Excluding preferred shares, the sum of them is 1.
The sources of funds of enterprises mainly include endogenous financing and exogenous financing, in which endogenous financing mainly refers to enterprises' own funds and funds accumulated in the process of production and operation; Exogenous financing is the external source of funds for enterprises, which mainly includes direct financing and indirect financing.
Direct financing refers to equity financing activities such as initial public offering (IPO), rights issue and additional issuance, so it is also called equity financing. Indirect financing refers to debt financing activities such as loans from banks and non-bank financial institutions, so it is also called debt financing.
Extended data:
The proportion of internal financing in the financing structure of listed companies in China is very low, and the proportion of external financing is much higher than that of internal financing, while those listed companies with "negative undistributed profits" rely almost entirely on external financing. Secondly, in external financing, the proportion of equity financing exceeds 50% on average.
Among them, the average share financing of listed companies through public offering of A shares in the stock market has reached about 65,438+07% of the total share financing capital, and with the further development of the stock market, it is reasonable to think that the average level of this ratio will continue to rise rapidly.
However, in the financing structure of western enterprises, according to the principle of pecking order financing, the choice order of financing methods of enterprises is firstly internal equity financing (retained earnings), secondly debt financing and finally external equity financing.
The financing order of listed companies in China is equity financing, short-term debt financing, long-term debt financing and endogenous financing, that is, the financing order of listed companies in China is obviously in conflict with the priority financing principle of modern capital structure theory.
In fact, on the one hand, most listed companies maintain an average asset-liability ratio far lower than that of state-owned enterprises, and even some listed companies have zero debt. However, practically speaking, almost none of the more than 1,000 listed companies in 1 000 will voluntarily give up the opportunity to use the re-issued shares for equity financing. We call the above characteristics of financing structure of listed companies in China equity financing preference.
Baidu Encyclopedia-Equity Financing Baidu Encyclopedia-Debt Financing