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The Influence Of Financial Background Of Senior Executives On Corporate Financing Constraints

Posted on:2018-03-02Degree:MasterType:Thesis
Country:ChinaCandidate:J LiFull Text:PDF
GTID:2359330518485988Subject:Business Administration
Abstract/Summary:PDF Full Text Request
As early as the end of the 19 th century,the publication of the ? Corporate Finance? marked the birth of enterprise financial management.Enterprise financial management paid attention to the raising of funds at that time.Until now,enterprise financing problem is still the focus of the company.Due to the imperfect capital market in China,enterprise financing constraint has been concerned for lots of enterprises.According to the World Bank Investment Climate Survey in 2012,there were about 75% of the private enterprises in our country to treat financing constraints as a main obstacle in the development process.How can we do to help the enterprise solve financing problem to develop rapidly,which is always the headaches of the modern scholars,the enterprise and government.In recent years,more and more people with the working experience in financial institutions have come into enterprises as executives frequently.This phenomenon means that these executives who have special ability in financing can improve the enterprise operation and development.Executives who are in at the center of the enterprise own specific experiences and characters to affect the growth of the enterprise.The domestic and foreign scholars also believe that the resources of relationship in society can bring value to the enterprise.It may be the effective way of solving the Enterprise financing.In this paper,we study the effect of the financial background of the executives,trying to study its impact on corporate financing constraints,and exploring its role in the micro mechanism.In view of this,we select all the samples of A –share listed company between 2008 and 2014 from Shanghai and Shenzhen stock market in China,sorting and matching data by Excel and Stata,and built the financial background database on the listed company executives.We made descriptive analysis,correlation analysis and regression analysis by Stata,taking the cash-cash-flow-sensitivity model to verify the relationship between the executives of financial background and corporate financing constraints,looking for the micro mechanism of financial background of executives on the enterprise financing constraints,and carrying on the related demonstration.The results show that,compared with the enterprise of the financial background of executives,others need to extract more prevention reserve funds from the enterprise operating cash flow,the cash flow sensitivity of cash ishigher,the degree of financing constraints is higher;because of executives of financial background,compared with other enterprises,the degree of the asymmetry information in the enterprise is lower;according to signal transmission theory,we find the information effect of executives of financial background,namely,the financial background of the enterprise executives can deliver good business information to the outside,reducing reverse cost,reducing the degree of the asymmetry information,and then reducing the cash flow sensitivity of cash,finally alleviating the financing constraints;in the case of separation of the effect of information on executives of financial background,executives of financial background also own the effect of resources,and showing that the financial background of enterprise executives can enhance the ability of getting resources,and to ease the financing constraints.Finally,this paper gives some corresponding countermeasures and suggestions on the results of the study,and alleviating the degree of the asymmetry information between enterprises and the supply of funds,and to improve the ability of enterprises to obtain resources are quit important to ease the financing constraints of enterprises.The empirical research demonstrates that the information effect and the effect of the resources of which executives' financial background alleviate the financing constraints,enriching the theory of relationship financing,and providing a more specific way to solve the financing problems of enterprises.
Keywords/Search Tags:Financing Constraints, Financing Backgrounds, Information Effect, Resource Effect
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