An Empirical Study On The Influence Of Heterogeneous Institutional Investors On The Financing Constraints Of Listing Corporation

Corporate finance constraint has been one of the main research contents in the field of corporate finance. Due to the existence of information asymmetry and agency costs, the company has a serious constraint on external financing.With the continuous development of the economy, the size of domestic institutional investors is more and more large, under the role of institutional investors, the listing Corporation’s internal governance system is more and more perfect. The share reform started after 2005, China’s institutional investors begin to further develop and grow, showing the coexistence of investment fund, QFII, brokerage and other types of institutional investors in the diversified development of the situation. Institutional investors can reduce information asymmetry, reduce agency costs, affect other shareholders’ decisions, improve corporate performance, create value for the company, ease the financing constraints of listing Corporation.But different institutional investors have different investment preferences, the active institutional investors value the company’s long-term development and maintain their own long-term interests; and negative institutional investors seek short-term interests and does not participate in the corporate governance. The behavior is called a heterogeneity of institutional investors. The classification of the common heterogeneity is mainly based on whether there is a business dependence with the investment company, which can be divided into the pressure resistance type institutional investors and the pressure sensitive institutional investors. Pressure resistance type institutional investors as one of the shareholders of a company have no commercial relations with the company and they value the company’s long-term development, impact the management decision, and actively participate in corporate governance; pressure sensitive type institutional investors have close contact with corporate business, the institutional investors often value its commercial interests and have collusion with corporate management, reap the benefits and not be actively engaged in the corporate governance.This paper is on the basis of the literature review of domestic and foreign institutional investors and financing constraints, the selection of 4694 A-share listed companies is from 2008 to 2014, using the interest coverage ratio dependent variable as measure of financing constraints, using the model of logic regression analysis, according to the heterogeneity of institutional investors and corporate business relationship. Analyse influence of heterogeneity of institutional investors on financing constraints and further analyse the relative advantage of the heterogeneity of institutional investors on corporate financing constraints impact. Study find that institutional investors overall shareholding have negative correlation with listed companies financing constraints degree; pressure resistance institutional investors shareholding have negative correlation with listed companies financing constraints degree; and pressure sensitive institutional investors shareholding ratio is positively related to financing constraints degree; heterogeneous institutional investors relative advantages and listed companies financing constraints degree have negative correlation. This paper further studies the heterogeneity of institutional investors’ influence on state-owned and private enterprises financing constraints degree respectively, showing that the heterogeneity of institutional investors on the sample of private enterprises research results are more significant, alleviating the effect of financing constraints is more obvious.