Comparative study of companies : financing resources and costs in China and Norway

Masteroppgave i bedriftsøkonomi - Universitetet i Nordland, 2012 Along with the fast growing of Chinese economy, there are more people considering investing in China. Financing issues are very important in investing in a foreign country with totally different culture and history of economy developme...

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Bibliographic Details
Main Author: Song, Di
Format: Master Thesis
Language:English
Published: Universitetet i Nordland 2012
Subjects:
Online Access:http://hdl.handle.net/11250/140796
Description
Summary:Masteroppgave i bedriftsøkonomi - Universitetet i Nordland, 2012 Along with the fast growing of Chinese economy, there are more people considering investing in China. Financing issues are very important in investing in a foreign country with totally different culture and history of economy development. This thesis studies the financing resources and costs in China and Norway. The aim is to provide information to Norwegian investor of the available financing resources in China and their corresponding costs. The study is mainly focusing on Chinese market, and the study of Norwegian market is an illustration which makes the Norwegian investors understand more precisely on the research results. The paper firstly introduced the current situation of Chinese economy, and then analyzed economic type, type of financial system in China with comparison to Norway. Based on the fundamental information of Chinese market, the study finds out the available financing resources in both countries. With the empirical data of the stock markets, bonds markets, and loans, the research implemented CAPM and After- Tax WACC on calculating the cost of capital in both countries. The comparison is performed to help the investors from Norway making optimal financing decision on investing in China.