Pressure of Competition to Listed Companies in Commodity Market and Selection of Financial Leverage
Pressure of Competition to Listed Companies in Commodity Market and Selection of Financial Leverage出 版 物：《Journal of Modern Accounting and Auditing》 (现代会计与审计（英文版）)
年 卷 期：2005年第1卷第5期
页 面：26-31页
学科分类：120201[管理学-会计学] 12[管理学] 1202[管理学-工商管理]
主 题：listed company pressure of competition in commodity markets financial leverage.
摘 要：As revealed by some competition of commodities supplied foreign experts, the financial leverage has an impact on the market by different listed companies, and low financial leverage implies a competitive edge but high financial leverage is liable to fail in business operation. Viewing from such an angle, the low financial leverage is in fact a conservative financial behavior, which means a reasonable selection. Generally, Chinese listed companies prefer financing from offering equity shares, which is regarded as a reasonable selection weighing both gains and risks. However, based on an analysis of the pressure of market competition to the listed companies of various industries and how they select their own fit/ancial leverage, it is found that there is an extremely unmatched phenomenon in China＇s capital market, i.e., the keener the commodity market competition is, the higher the financial leverage of listed companies will be. Therefore, the over-financing from offering equity shares is coexisting with under-financing from offering equity shares in China＇s capital market at present, and both lead listed companies to low efficiency.
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