Research On The Impact Of Financial Structure On Financing Constraints Of Environmental Protection Industry

Environmental pressure and the demand for sustainable economic growth promote China’s environmental protection investment increased year by year and the rapid growth of the environmental protection industry,but the development of the environmental protection industry is still facing a huge financing gap.The financial structure is the key factor to form such a gap.The adjustment of the financial structure is also one of the main ways to eliminate the financing difficulties of the environmental protection industry.The main factors that affect the financing constraints of the environmental protection industry can be divided into two categories.One is the environmental protection industry itself.The large initial capital requirement,the long investment cycle,and the unstable investment return,making the industry subject to "financing difficulties".The other is the external environmental factors,the irrational structure of the financial system,the low operating efficiency,the imperfections system mechanism and so on,making financial system support for the development of the environmental protection industry inefficiently.In this paper,the financial structure is introduced into the theory of financing constraints,and analyzes the mitigating effect of financial structure on the financing constraints of the environmental protection industry from the perspective of financing functions such as direct effect of financing,risk management effect,information supply effect and corporate governance effect,in order to seek for the optimization path of financial structure to support the development of the environmental protection industry.In the verification analysis section of the theoretical point,this paper uses the method of combining statistical analysis and futher empirical analysis to study the relationship between financial structure and financing constraints of the environmental protection industry.According to the statistics of the financial structure and the financing structure of the environmental protection industry,it is found that the financial structure of our country is still dominated by the bank.The proportion of direct financing mainly based on equity financing is relatively low and increases year by year,and the degree of financial marketability gradually increases.The environmental protection industry is faced with the lack of total investment,narrow financing channels,unreasonable use of funds.In the empirical aspect,the Logistic model and the stochastic frontier model(SFA)are firstly used to establish a comprehensive index to measure the financing constraints,and the cash-cash flow sensitivity model is used to test the validity.Then the financial structure indexes are respectively introduced into the cash-cash flow model to examine the impact of the financial structure on the financing constraints of the environmental protection industry.The results show that:(1)The financing constraints are common in the environmental protection industry;(2)The financial structure financed by the stock market financing / bank credit can ease the financing constraint of the environmental protection industry;The higher the marketization degree of the financial structure,the stronger the mitigation effect;(3)Market-oriented adjustment of financial structure is conducive to the improvement of financial function efficiency,thereby enhancing the service efficiency of the financial system to the environmental protection industry.Finally,we put forward policy suggestions from the aspects of expanding bank green credit,multi-level construction of financial market,establishing environmental information and risk management system,innovation of green financial products,marketization of financial structure,to adapt the financial structure to the development of environmental protection industry.