Research on the Factors Influencing on the Selective Tendency of Financing Method—Based on the Listed Companies’ Empirical Evidence in China

Abstract

This paper use stepwise regression to do empirical analysis of the factors influencing on the selective tendency of financing method, based on the sample of China’s listed companies in 2009-2013. Research findings show that profitability, information asymmetry, operating and financing risks, non-debt tax shield and cost of equity have different corresponding significance and correlation relationships with the degree of internal, debt or equity financing. Financing risk is the most factor influencing the tendency of internal and debt financing, and Profitability influences equity financing most.