The Effect Of Financial Development On Corporate Investment Efficiency Under The Policy Of The Financial Constraints

China’s financial reform and financial development process is obviously in the environment of financial constraints policy, and there are various types of ownership enterprises in China. Enterprises of different ownership acquire different rent allocation under the policy of financial constraints. What’s more, the level of financial development in different area is unbalanced, leading to the different influence on enterprises of different ownership’investment efficiency. Under the background of financial constraints policy, the study of the relationship between financial development and corporate investment efficiency can help us to understand how financial development affect the corporate growth, which will help to guide the financial development and enhance its impact on the effectiveness of corporate growth.Domestic and foreign studies on financial development-financing constraints-investment efficiency is not very more, mostly in isolation from a separate study, or of financial development on the financing constraints, or the financing constraints easing the investment efficiency, although domestic scholars made some research on financial development and investment efficiency, their study is from the perspective of macro investment efficiency, rarely from the enterprise micro-efficiency of investment, furthermore, they rarely have the financial constraint policy background included the research. This thesis is based on this policy to financial constraints, using the financial development ease the financing constraints-financing constraints distort corporate investment behavior thus the efficiency of business investment financial development affects the efficiency of business investment as the main line, on the basis of theoretical analysis applying descriptive statistics, DEA method and GMM method to examine the effect of financial development on corporate investment efficiency under the financial constraints policy. We obtain the following conclusions:First, financial development reduces the cost of external financing, easing enterprises’ financing constraints,and the degree of mitigation of financial development on the financing constraints of enterprises of different ownership is not the same, financial development’ easing effect on state-owned enterprises is even more obvious. Second, financial development does not promote the efficiency of business investment. Compared with state-owned enterprises, the inhibitory effect of financial development on the efficiency of private enterprises’investment is somewhat weaker, that is to say, in areas of higher financial development, the investment efficiency of private enterprises is relatively more efficient. At the end of this article, we made some policy recommendations.