Financial Constraints And Financial Risk Under Collectivize Operation

Early 2011,the Japanese nominal GDP of 2010 issued by the Jopan Cabinet Office is 5474.2 billion dollar,and Chinese nominal GDP is 5878.6 billion dollar,it shows that China has officially replaced Japan to become the world's second-largest economy. Since reform and opening-up, Chinese economy has developed rapidly because of the economic restructuring, so some economists think that the 21st century is the golden age of economic development for China. According to the statistics from the national development and reform commission ,Chinese nominal GDP of 2009 is 33535.3 billion yuan ,the company's assets of Chinese conglomerates at the end of the year is 19312.4 billion yuan and the total revenues is 18070.072 billion yuan, which occupies 57.6 percent and 53.9 percent respectively. Obviously the development of conglomeration plays an important role for Chinese economic development.So the research about enterprise group problem is very necessary, and meaningful.If an enterprise wants to survive and develop ,it has to use all available resources, including not only the external capital market resources, but also allocating internal capital markets resources. This paper is based on the theory of internal capital market , using China's a-share market data and the empirical research method, to verify this two assumptions, The first assumption: Within the enterprise groups ,it is not linear relation, but u-shaped relation between financing constraints and financial risk; The second assumption: state-owned enterprise group financing constraints relatively is lower than non-state-owned holding enterprise groups. This paper finally gain the conclusion that enterprise collectivization can alleviates financing constraints and financial risk relationship.The paper has six chapters, divided into two parts: the first part is theoretical parts, including the former three chapters, the first chapter is introduction which introduces the research background,the significance and methods; The second chapter is the literature review which summarize the relevant theory of foreign enterprises collectivization ,financing constraints and financial risks related theory; The Chapter 3 theoretical analysis and research assumptions,this paper suggests the research assumption of this paper relying on internal capital market theory , with China's special system background, proposed this . The second part is empirical parts, including the last three chapters, the fourth chapter is the research samples and model establishment, it mainly introduces the screening method of data , variable definition and builds the model to verify assumption provided by the third chapter ; The Chapter 5 is empirical test part,inputing the manual screening data to the model we will get the results and then analyzed and verified the assumption of this paper; The sixth chapter is the conclusion, which summarizes the result of this paper and points out the achievement,the shortcomings and the future research direction.