The Study Of Small And Mdium-sized Enterprises’ Investment Behavior Under Financing Constraints

Development of30years of the reform and opening-up has demonstrated that small andmedium-sized enterprises(SMEs), in terms of both quantity and quality, have become animportant component in national economy and constitute a new and significant growth point innational economic development. However, financing constraints Problem is a bottleneck ofrestricting of the development of SMEs. Since there are information asymmetry, agency costsand transaction cost in the imperfect capital market, SMEs will be faced with financingconstraints problem if they adopt the way of external financing. Financing constraints problem isubiquitous, especially in SMEs.The paper sorts out the course of the development of the business investment theory, andanalyzes the reasons of financing constraints problem in SEMs,combined with the presentsituation of the financing of Chinese SMEs. On the basis of the above theoretical analysis, thestudy selects the listed SMSE Enterprises of Shenzhen stock market from2008to2011asresearch sample and chooses industry cluster, financial development level and the high-techauthentication of China as the standard of financial constraints with the descriptive statistic,analysis of variance and regression. The purpose is to study the investment behavior of SMEunder different financing constraints.The empirical study shows that there is a significantly positive relationship betweencompany investment and cash flow in SMEs, indicating that the SMEs in China have a commonproblem on Financing constraints. And industry cluster and financial development can ease theproblem about SMEs’ financing constraints. In contrast with traditional SMEs,thetechnology-based SMEs are confronted with less financing constraints. Finally,the paper putsforward some suggestions from the view of government based on the conclusions of this paper.