Research On Financing Constraint And Investment Efficiency Of Enterprise Group

Enterprise group was accompanied by the social large-scale production and the increasingly market competition,which request the ability to resist risks and response to the production and operation needs.Today,it has become an important economic organization form and one of the most important participants in the market economy.Especially in our country,large and medium-sized enterprises which were state-owned play a supporting role in the national economy,so this economic organization form also occupies an important position.In recent years,the number of enterprise groups in China has been increasing,the scale of them has been expanding quickly,and their influences on the development of market economy has been increasing.The research on enterprise group is more and more in-depth,the study of this organization form not only focusing on the diversification of enterprise groups and the development strategy,but also includes economic consequences of the economic operation.Based on the theory of investment and financing,this paper makes an in-depth study on the financing and investment effects of group operation.Investment and financing behaviors of listed companies has always been a hot topic in domestic financial theory,it is critical that companies can mobilize the resources needed to develop and invest in the most effective way.In the early stage of enterprise development,financing option is more single,focused on debt financing and equity financing.However,debt financing requires a higher level of assets and liabilities.Due to information asymmetry in external capital market,it can not understand the true development of enterprises,leading to the existence of financial constraints.The internal capital market which exists in the enterprise group could understand the financial status of the enterprise very well,and allocate funds according to the needs of enterprises,to meet the production and operation needs.The internal capital market can alleviate the financing constraints faced by enterprises very well.On the other hand,capital allocation efficiency becomes another key issue to consider.It is generally believed that the impact of internal capital markets on investment efficiency has two sides.On the one hand,it can ease the situation of inadequate investment in enterprises,on the other hand,it may lead to over-investment.Taking into account the institutional background,State-owned enterprise groups and non-state-owned enterprise groups have different effects on investment efficiency.Based on this theory,in this parper,wechoosed 2010-2014 A-share listed companies in Shanghai and Shenzhen as the study samples,and we choosed 4920 companies to analyse their data.First of all,we need to determine the financing constraints of the sample companies,a quantitative model was established to estimate the size of the firms' financial restraints.Then the Richardson model is introduced to estimate the inefficient investment.Finally,we need a empirical test.This empirical test is divided into two parts.First,we need to verify that the financing constraint companies can mitigate the effect of financing constraints through group management.Next,the group variable is used as the manipulated variable to examines the impact of financing constraints on investment efficiency.The conclusion shows that the listed companies which belong to enterprise groups can ease the financing constraints,While the level of financing constraints mitigating in different ownership companies are different,Private enterprise groups perform better than state-owned enterprises.The level of financing constraints of listed companies which belong to the group are related to inefficient investment.On the one hand,it can alleviate the lack of investment.On the other hand,it may exacerbate over-investment.The results of the group discussions which according to the nature of ownership show that the situation of relieving underinvestment exists mainly in the private enterprise groups,and the situation of exacerbating overinvestment mainly exists in the state-owned enterprise groups.Finally,according to the conclusion of this study,we put forward the corresponding policy recommendations,and supplement the shortcomings of this article.