The Research On The Relationship Of Financing Constraints And The Sensitivity Of The Debt Financing-internal Cash Flow About Chinese Listed Companies

For the existence of such factors as asymmetric information, the actual capital market is not perfect External financing cost is much higher than the internal financing cost obviously. The company will meet the financing constraints when external financing. According to "Pecking Order Theory", the company will follow the order as internal financing, debt financing and share financing. The more financing constraints it meets, the more the company will prefer using internal financing to investThe financing constraints not only affect the investment of the company, but also the financing activities. Using internal cash flow to reflect the internal financing capability, the paper analyzes the debt financing-internal cash flow sensitivity when companies facing various degrees of financing constraints. The paper combines the theory analysis with empirical study, analyses the factors affecting the financing constraints based on the hypostasis of the financing constraints at first. And then the paper analyses the influence of the preference of share financing about the Chinese listed companies. The paper sets up the mode of the debt financing-internal cash flow sensitivity by analyzing Has financing constraints theories. And it selects the listed non-financial companies of Shanghai and Shenzhen stock markets to do the demonstration. Two conclusions can be reached from the empirical study:(1) There is a remarkable negative relativity existing between china's listed companies' debt financing and internal cash flow. As the increase of the internal cash flow, the company's debt will decrease. The sensitivity between the two inclines to strengthen with the lapse of time.(2) The financing constraints can affect the sensitivity of the debt financing and internal cash flow. The sensitivity of the debt financing-internal cash flow is high when the companies meet high level financing constraints, and the sensitivity of the debt financing-internal cash flow is low when the companies meet low level financing constraints.The research has definitely influence on the companies' investment and financing activities.