Equity Financing Regulation and the Optimal Capital Structure: Evidence from China

Capital Market Imperfections, High-Tech Investment, and New Equity Financing*

Highly variable returns, asymmetric information and a lack of collateral should cause small high-tech firms to have poor access to debt. New equity financing has several advantages over debt, but may be costly compared to internal finance. We examine an unbalanced panel of over 2,400 publicly traded United States high-tech companies over the period 1981 to 1998. Most small high-tech firms obtai...

Efficient venture capital financing combining debt and equity

I present a model of venture capital contracting in which contracts that involve a mixture of both debt and equity are efficient and dominate pure-equity and pure-debt financing. The optimal contract balances the venture capitalist’s incentive to intervene in the project and the entrepreneur’s desire for control. JEL classification: G24, G32

Evaluate the relationship between the structure of the economy and capital market financing

The importance of developing the financial sector, followed by the development of its financing comes from the Efficient financial sector, a key role in mobilizing resources for investment, encouraging foreign capital to enter and equipment and optimize resource allocation mechanism plays And a developed financial system in a country, with financing for the real sector of the economy, creates o...

The inner structure of pyramid and capital structure: Evidence from China

This paper examines the relationship between capital structure and the inner structure of pyramid in an emerging market economy country. The author uses firm-level panel data of Chinese listed companies to analyze the influence of the inner structure of pyramid on capital structure and the differences between different institutional environments of that influence deeply. His results show that t...

Financing Innovations and Capital Structure Choices