外文翻译-----中国上市公司偏好股权融资：非制度性因素-企业融资(编辑修改稿)

外文翻译-----中国上市公司偏好股权融资：非制度性因素-企业融资(编辑修改稿)内容摘要：

urn to equity fund when it fund outside. We should understand that this conception of “capital cost” is taken into account by investors, it is somewhat opportunity cost of the investors, can also be called expected returns. It contains of riskfree rate of returns and risk rate of returns arising from the investors’ risk investment. It is different with financing cost in essence. Financing cost is the cost arising from enterprises’ financing activities and using fund, we can call it fund cost. If capital market is efficient, capital cost should equal to fund cost, that is to say, what investors gain in capital market should equal to what fund raisers pay, or the transfer of fund is inevitable. But in an inefficient capital market, the price of stock will be different from its value because of investors’ action of speculation。 they only chase capital gain and don’t want to hold the stocks in a long time and receive dividends. Thus the listed panies can gain fund with its fund cost being lower than capital cost. But in our national capital market, capital cost of equity fund is very low。 it is because of the following factors: first, the high P/E Ratio (Price Earning Ratio) of new issued shares. According to calculation, average P/E Ratio of Chinese listed panies’ shares is between 30 and 40, it also is maintained at 20 although drops somewhat recently. But the normal P/E Ratio should be under 20 according to experience. We can observe the P/E was only from 1874 to 1988 in US, and only 10 in Hong Kong. High P/E Ratio means high share issue price, then the capital cost of equity fund drops even given the same level of dividend. Second, low dividend policy in the listed panies, capital cost of equity fund decided by dividend payout ratio and price of per share. In China, many listed panies pay little or even no dividends to their shareholders. According to statistic data, there were 488 listed panies paid no dividend to their shareholders in 1998, percents of all listed panies, there were 590, percents in 1999, even 2020 in which China Securities Regulatory Commission issue new files to rule dividend policy of panies, there were only 699 panies which pay dividends, percents more than that in 1999, but dividend payout ratio deduce 22%. Thus capital cost of equity is very low. Third, there is no rigidity on equity fund, if the listed panies choose equity fund, they can use the fund forever and has no obligation to return this fund. Most of listed panies is controlled by Government in China, taking financing risk into account, the major stockholders prefers to equity fund. The management also prefer equity fund because its lower fund cost and needn’t to be paid off, then their position will be more stable than financing in equity fund. We can conclude from the above analysis that cost of equity fund is lower than cost of debt fund in Chinese listed panies and the listed panies prefer to such lowcost fund. 3. Types and qualities of assets in listed panies and preference to equity fund Static Tradeoff Theory tells us, the value of enterprise with financial leverage is decided by the value of selfowned capital。 value arising from tax benefit, cost of financial embarrassment and agency cost. Cost of financial embarrassment and agency cost are negative correlative to the types and qualities of panies’ assets, if the enterprise has more intangible assets, more assets with lower quality, it will has lower liquidity and its assets have lower mortgage value. When this kind of enterprise faces to great financial risk, it will have no way to solve its questions by selling its assets. Furthermore, because care for the ability of turning into cash of the mortgage assets, the cred。