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Z. Wang, D. Zhao and W. Zhu, “Market Timing in Sea- soned Equity Of-ferings with Security Issue Regulation and Its Impact on Capital Structure,” Nankai Business Review, Vol. 10, No. 6, 2007, pp. 40-46.

has been cited by the following article:

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

  AUTHORS: Zhengwei Wang, Wuxiang Zhu

  KEYWORDS: Equity Financing Regulation; Supply-Side Effect; Capital Structure

  JOURNAL NAME: Modern Economy, Vol.3 No.5, September 29, 2012

  ABSTRACT: The “Supply-side effect” on financial management caused by market imperfection has increasingly been concerned. During the transition period, there is strict securities regulation in China’s capital market, which brings the supply-side constraints to corporate financing. Using the data of listed companies those take secondary equity offerings between 1993-2007 in China’s A-share market, the paper examines how the change of regulation policies on SEOs affects cor-porate financing decisions. Our result shows that regulation policy is a significant factor to the amount of refinancing and the optimal capital structure. This result provides important evidence on how the equity regulation environment affects corporate financial management.