Abstract: Abstract: At first, the heterogeneous beliefs among investors impact on financing implement selection and financing scale in presence of Chinese constraints for selling short are discussed. Subsequently, using adjusted turnover and abnormal return volatility as two proxies, the implications of heterogeneous beliefs for financing implement selection and financing scale are empirically studied. The results indicate that: (1)The greater the heterogeneous beliefs are, the more likely the firm chooses to issue equity; (2)Heterogeneous beliefs are negatively related to the financing scale for equity issuers; (3)Heterogeneous beliefs are unrelated to financing scale for debt issuers. It shows that heterogeneous beliefs affect financing implement selection, but the relation between heterogeneous beliefs and financing scale is influenced by financing implement.

Key words: heterogeneous belief, financing implement selection, financing scale