A Study On The Investment Of Chinese Listed Companies In The Field Of Electronic Information Industry From The Perspective Of Financing Constraint Theory

As one of the hottest industries all around the world, the electronic informationindustry is also one of the most important major pillar industries for economic growth inour country. Therefore, the development of electronic information industry attaches greatimportance for the increase of added-value of industry, for the realization of industrialmodernization, and for the transformation of China’s industrial structure from extensiveform to intensive form. In the recent decade, China’s electronic information industry hasdeveloped rapidly, reaching the world leading level in the perspective of annual value ofproduction, and more and more capital and labor are put into this industry. Today, thedevelopment of electronic information industry is closely related to our nation’s economicgrowth, people’s livelihood and the stability of the society. In this environment, a study onthe investment of electronic information industry to figure out the features and trends ofthe investment in this field can do some help for the functional departments to work outthe problems in its investment and to improve the timeliness and scientificity of comingpolicies; meanwhile, it is also helpful for enterprisers to know the development of theircompanies and to better their future plans.On the basis of the above, this thesis deeply analyze the features of enterprises’investments under different financing constraint level by taking the investmentenvironment of enterprises, getting an overall understanding on the current investment ofChinese enterprises by combining the external and internal factors for the development ofa enterprise.On the statistical descriptive analysis of selected samples, the thesis finds out thatmost listed enterprises in the electronic information industry boast a relatively highdebt-to-equity ratio, some of which even experiencing severe insolvency. However, these solvency-poor enterprises usually have a much larger annual investment than thosesolvency-strong enterprises. From the perspective of investment efficiency, the enterprisewith a high investment rate often bears a low rate of investment efficiency, whichintensifies the risk of bankruptcy. However, the enterprise with a relatively good financialstructure tends to conservative investment strategies, which leads to an inefficient use ofits advantage in the capital. The hidden reasons are worth to think over.The further empirical research of the selected samples indicates that a positivecorrelation exists between the enterprise’s investment efficiency and inner free cash flowin China’s electronic information industry. Moreover, the sensitivity will increase with thehigher level of financing constraint. It proves that there do exists a financing constraint onlisted enterprises in electronic information industry to some extent and low investmentefficiency in the use of internal capital in some enterprises. Therefore, the board of theseenterprises may incline the investment efficiency through increasing the use efficiency ofinternal funds. As to the enterprises that are with the lowest investment efficiency, theyare heavily depending on external financing support. The government should supervisethe financing channels of these enterprises in order to avoid the loss of social wealth asthe result of an operation inefficiency of a enterprise. Meanwhile, the goodness of fit ofthe regression model has increased after the introduction of prospective variable. It provesthat the prospective profit of managing agent is also an influencing factor for theinvestment of a enterprise. Therefore, it is very important to improve the quality ofmanaging agents and their reasonableness and accuracy for China’s electronic informationindustry to reach a great and continuous development.