The Empirical Research: How Does The Diversify Of China's Listed Companies Effect Their Financing Constraints

The advantages and disadvantages of diversification and specialization have been controversied in the theory and practice for a long time, and specialization supporters say that specialization can integrate resources, enhanceing their competitiveness; In contrast, diversified argued that pluralism is conducive to resources Integration, and can effectively decentralized market risks. This paper choose a new perspective, from the view of corporate finance professional management and diversification of the company operating the impact of financing strategies.In the sample selection, omissions the samples which do not meet the requirements , this study used a sample of data sources on the Shanghai Stock Exchange for the listing of the 85 listed companies, the 06,07 annual report, a total of 170 sets of data. In model 1 and 2 models used in the industry measure of the number of enterprises whether there is pluralistic, diversified companies to test the impact of financing constraints, the model 3 and 4 model used in the professional method metric diversified businesses, diversification test The higher the level of the effects of financing constraints.Through empirical testing, we have two main conclusions: first, diversified business strategy to reduce corporate financing costs, easing financing constraints, to diversify business strategy of listed companies easier access to external financing; Second, the degree of diversification enterprises Financing constraints have an impact, the higher the degree of diversification, the financing constraints facing businesses smaller. Instead, the diversification of enterprises, the lower level, enterprises are facing greater financing constraints.