The Research On Firm Size, Ownership Of Manufacturing About Financing Constraints, Evidence From Chinese Listed Company

When the economic crisis comes, it is different between the enterprises which areconfronted with different financing constraints in the ability of bearing the impact of theeconomic crisis. This paper first reviews the existing financing constraints literature,from the results of previous studies,. the owner’s nature and firm size influence thefinancing constraints of the firm. And then the paper analysises the enterprises’financing theory. Analysising the enterprise financing constraints from financingchannel and financing ways. Due to the existence of objective factors of the capitalmarket imperfections, the asymmetric information and principal-agent and transactioncosts, the enterprises are not the same in the financing channels and the financing ways.It is different between the enterprise internal and external financing cost, and externalfinancing cost more than internal financing costs. enterprises are facing financingconstraints, financing constraints on enterprises’ expansion, enterprise’s investmentactivities have a significant impact. And financing constraints faced by differentcompanies there is a considerable difference.Research shows that, the owner nature and the scale of enterprises influence thefinancing constraints of the firm. Now we will research Chinese manufacturing listedcompanies which are facing financing constrains, they are different in ownership andfirm sizes, we will also discusses the relationship between them. The empirical testshows that, with the expansion of the scale of the listed companies, listed companies inChina face financing constraints showing the trend of the first larger and then smaller,indicating that large-scale listed companies and small-scale listed companies requiredfrom the capital market on the financial funds easy. Financing constraints faced bystate-owned listed companies is larger than private listed companies, indicating that themanufacturing sector of private enterprise through the "listed" to be able to effectivelyreduce financing constraints, to reduce the impact of soft budget constraint on corporatefinance. There is a big difference with the same nature of the listed companies which are different in sizes on the financing constraints,large-scale state-owned listed companiesfaced by the financing constraints are smaller than the small-scale state-owned listedcompanies, but private listed companies are just the opposite; Financing constraintsfaced by large-scale state-owned listed companies are less than the large-scale privatelisted companies, and financing constraints faced by small-scale state-owned listedcompanies larger than small-scale private listed companies. That distorted due to therole of capital markets, state-owned listed companies and private listed companiestwisted by financing constraints.