Font Size: a A A

A Study On The Investment Efficiency Of China 's A - Share Listed Companies Under The Financial Constraints

Posted on:2015-09-30Degree:MasterType:Thesis
Country:ChinaCandidate:L ShenFull Text:PDF
GTID:2279330464457137Subject:Finance
Abstract/Summary:PDF Full Text Request
In traditional theory of investment and financing, under the assumption of perfect financial markets, corporate finance situation has nothing to do with the investment situation. However, in reality the assumption is inconsistent with the perfect condition. Asymmetric information leading to different internal and external financing costs, making corporate investment behavior is constrained external financing. On the other hand, China’s financial market is still in the development stage, lack of multi-level capital market development, Chinese enterprises have made financing constraints widespread and affect investment efficiency.Based on the heterogeneity of stochastic frontier investment model and China’s A-share listed company’s operating condition, this paper studied the impact of financing constraints and investment efficiency. The results showed that:(1) China’s A-share listed companies have significant financing constraints and the financial constraints make the overall efficiency of listed investments decreased by about 22%. (2) Among the main financing in China’s listed companies, the increase in internal cash flows can ease financing constraints and reduce uncertainty. Although equity financing can reduce financing constraints, it does not help to reduce the uncertainty of the follow-up financing. Debt financing can reduce financing constraints, but it bring more subsequent financing uncertainty. (3) Large-scale companies face lower financing constraints, and small companies not only face serious financing constraints, and there is a worsening trend, showing the financing problem of SMEs in China still exists...
Keywords/Search Tags:Efficiency of Investment, Financing Constraints, Heterogeneity Stochastic Frontier Model
PDF Full Text Request
Related items