Let's not discuss whether that sentence is true or not.
For the average listed company, the person in charge is indeed quite high. The reason is that most listed companies are relatively strong companies with strong growth potential or profitability. The purpose of listing is to raise development funds. If there is no development prospect, the original major shareholder will not spend too much energy and high listing cost to let the company go public, especially the listing rules have quite strict requirements on development potential and profitability. The so-called "development" here also refers to the potential and profitability. That is, most listed companies have the ability to issue shares (this may be a bit of a jump, I believe you can understand).
For creditors, due to the risk of principal and interest recovery, they are usually willing to provide funds for listed companies, especially commercial banks, so that their listed companies will have a source of debt funds (except creditors, key debtors will accept it).
For listed companies, whether or not to borrow and how much to borrow are all decided by the management. The most helpless thing for management is that there is no money. Where does the money come from:
1, issue additional shares. This is not an ordinary thing for any wise company, because not only the issuance cost is high, but also the return required by equity funds is high. More importantly, if the original shareholders can't get enough funds to subscribe for new shares, they are likely to lose control of the company.
2. Accumulation of production and operation process. If you rely entirely on the accumulation of the production process, it will be slower. Moreover, in order to expand sales, we need to increase inventory and accounts receivable, and we also need to occupy a lot of money. The speed of accumulation is quite limited. In addition, the accumulation is not necessarily used to expand reproduction, and shareholders have to wait for dividends.
3. borrow. Haha, it's quite exquisite here, so I'll start a new line ~ ~ ~
Borrowing money needs to start with the principle of financial management. It's too specific to allow, so make it simple ~ ~ ~
1) Debt interest is usually much lower than the cost of equity funds.
2) Debt interest can usually be deducted before enterprise income tax, that is, it can be deducted, but the cost of equity capital cannot.
3) For shareholders, the debt of the invested company needs to be repaid additionally, that is, if the invested company cannot repay the principal and interest of the debt, it is the invested company's own business, and shareholders are only responsible for the invested company to the extent of their own capital contribution. Therefore, the more debt, the better for shareholders.
etc
Therefore, listed companies and their shareholders are willing to accept money from creditors or take the initiative to borrow money from creditors. Increase enterprise value (increase earnings per share through appropriate debt scale).
Then the first half of the sentence "It is normal for listed companies to have higher debt ratio than non-listed companies" is established.
In contrast, unlisted companies can't go public because (or may be) they can't meet the listing conditions, and the most important thing may be the lack of strength. So, if you have money, would you like to lend it to someone with strength or someone without strength, if you are wise? Therefore, most non-listed companies cannot raise their debt ratio because they can't borrow money.
I believe what I said is not comprehensive. But I also believe that you can understand the meaning of that sentence.
Right?