Listed Company's Share Allotment Size Decision-Making under the Total Circulating Expectation

This paper analyses how listed companies make Share Allotment size decision theoretically and empirically based on maximizing controlling shareholders' revenue under the total circulating expectation. The empirical results show that listed companies have impulse to the expansion of large-scale financing as the financing market discipline and regulatory mechanisms are inadequate. The controlling shareholders also take advantage of equity prices overvalued when they make financing size decision, and they can select the appropriate level of participation of allotment combined with their self-interests in the allotment funding process to maximize their revenue.