A Study On The Relationship Of Financing Constraints And Investment Decision-making Of China's Listed Companies

According to the MM theory, under the premise of the establishment of a series of hypotheses such as: perfect capital market, no corporate income tax, no bankruptcy and agency cost etc, corporate capital structure has nothing to do with the corporate market value, neither does company with external financing constraints, however perfect capital market is only an ideal which does not exist in reality. Since the existence of issues such as the information asymmetry between market participants, the company commissioned agent and the market transaction costs, the company's investment decisions will be affected by financial constraints or the problems of agent, and investment will be sensitive to internal cash flow. The purpose of corporate finance is to invest, and financing decisions interact with investment decision. Therefore, the study of the relationship between financing constraints and investment decisions is of great theoretical significance, which help us to better understanding corporate financial decision-making and business development law. At the same time, as domestic-related research system and method do not yet perfect and the conclusions differ, the in-depth studies of the relationship between financing constraints and investment decision-making can be further enriched the theory of investment and financing company.Compared with foreign related empirical research findings, many domestic scholars use " enterprises have the equity financing preference " to explain the listed companies'financing behavior. first This article theoretically in-depth analyses the financing structure and financing preference, then made listed companies in Shanghai and Shenzhen in China as the research object, and empirically study of China's listed companies structure and financing preference by using new ideas and methods, then finally come to the conclusion of endogenous financing preference. On this basis, the paper continues to select data from the listed companies in Shanghai and Shenzhen panel as samples, and study the relationship between corporate investment and cash flow sensitivity to the samples empirically, and introduces motivation test factor (joint item Q*CF/K of investment opportunities and cash flow) into regression model, and carryout motivation test of the overall samples, investigate corporate characteristics of underinvestment or overinvestment preliminary. Then, this article, by setting the G value - the ratio of cash flow and investment opportunities - divides the sample into underinvestment Tendency group (the lower group of G value) and overinvestment Tendency group (higher group of G value), and investigates the investment - cash flow sensitivity relations and causes of two samples, and analyzes and judges the empirical results accordingly. Finally, Taking the Total assets of the enterprise as a classification standard, this article examines whether the investment decision-making is influenced by financing constraints, compared with foreign research findings. The part of"the Conclusions and policy recommendations"of the paper puts forward some suggestions about China's listed companies and capital market development for the empirical result.