Notice of RetractionStudy on the reason of equity financing preference

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

There was a clear preference of equity financing in China, which was contrary to pecking order theory in Western-developed markets. Why this phenomenon happens in China? This article studied from the perspective of soft restriction of equity financing cost. Because of soft restriction, makes the total cost of equity financing lower than debt financing costs, equity financing preference formatted. Even if there is equity financing cost higher than debt financing costs, because there were exist imperfect corporate governance and capital markets, lead to equity financing costs lack of binding for the enterprises financing decisions, will inevitably lead to equity financing preference. This article concludes with a number of recommendations.