A Study On The Influence Of Financial Development On Corporate Financing Constraints And Investment

The study on financing constraints has been one of the hot issues in academic research.The famous MM theory holds that the cost of internal and external capital f the enterprises is the same,and the investment decision is not affected by financing.The investment decision of the enterprise is not related to the financing choice.However,the reality of the financial market is not effective,the existence of financial friction caused by the cost of the use of external funds is much higher than the internal capital,leading to financing constraints,and then misses the best investment opportunities.Therefore,it is of practical significance to study the influence of financial environment on the investment and financing.Based on the comprehensive analysis of literature,this paper adopts the perspective and method which is different from the previous research,chooses the listed companies data from 2006 to 2013 as the sample,uses the GMM estimation method of the dynamic system,research the impact of financial development on corporate investment and financing,and put forward relevant policy recommendations for the problem of financing enterprises.First of all,combined with China's financial development system background,this paper analyzzes the date of financial development level of each region,then classifies the samples according to the their attributes to analysis the impact of financial development on corporate investment and financing,the classification standard is based on the industry and growth stage of the enterprises.At the end of the article,the paper puts forward some policy suggestions on how to improve the degree of financial development,alleviate the external financing constraints and promote the development of enterprises.The research found that:(1)China's listed companies generally exist financing constraints,The degree of financial development is inversely proportional to the financing constraints,financial development plays a catalytic role in the investment of enterprises;(2)With the deepening of financial development,the financing constraints faced by listed companies have been alleviated.The financial development's easing effect impacting on enterprises is even stronger in low level of financial development region;(3)Companies in different industries face different levels of financing constraints,technology-intensive enterprises face the minimum financial constraints,then are labor-intensive enterprises,finally are labor-intensive enterprises.The financial development's easing effect impacting on labor-intensive enterprises is even stronger;(4)Enterprises at different ages have different characteristics,so do the degree of financing constraints.