The Influence Of Holding Shares In Financial Institutions On Enterprise Financing Constraints

With the development of Chinese financial market and the transition of Chinese economy,more and more industrial enterprises layout part of the industrial capital to the financial sector by making use of the integration of industry and finance through sharing and holding equities of financial institutions.According to the data from the investigation system on Chinese Enterprises in 2011,the enterprises investigated holding share in financial institution have reached 20.4 percent and during the further investigation on these enterprises,we found that the main reason for 50.2 percent enterprises coming up with holding share of financial institutions is " gain more support of credit aid,strengthen the flexibility of finance",and this motive is more obvious in places has low level of marketization,like Midwestern.Therefore,more and more enterprises,take advantage of equity investment to hold share of financial institutions,especially unlisted financial institutions.The main motive is probably closely related to financing constraints which exist in Chinese enterprises ubiquitously.So,it has great theoretical and practical value to study industrial enterprises how to make better use of the integration of industry and finance under the background of the integration of industry and finance,and to study Administrative authority using reasonable institutional environment to show the advantage of the integration of industry and finance,so as to ease the financing constraints and promote balanced development of regional economy.This paper analyzes the reason for the birth of financing constraints and get a further study on system how enterprises holding share of financial institutions influences the financing constraints from Asymmetric information theory and Principal-agent theory point of view.Then analyzes the development course and the current situation of enterprises holding share of financial institutions under the background of the integration of industry and finance,and the current situation of financing constraints of enterprises.By collecting the data in Shanghai and Shenzhen A-share listed companies from 2009 to 2015 and taking advantage of cash-cash flow model,this paper examines the influence of holding share of financial institutions on the financing constraints of enterprises and under different institutional environment of its' influence.The empirical results show that compared with non-existent holding financial institutions,holding share of financial institutions is able to ease company's financing constraints.And the influence of easing company's financial constraints is more obvious in the worse institution environment.At last,according to results of theoretical and empirical analysis,this paper gives advice from three aspects: strengthen the exchange of information between enterprises and financial institutions,give enterprise holding share of financial institution's financing efficiency into full play,promote the integration of industry and finance in the low level of marketization,so as to promote balanced development of regional economy.The contributions of this paper also lie in the following two aspects.First,researches enterprise ownership's impact on enterprise financing constraints,including banks,which extends from the relationship between bank and enterprise theory to the integration of industry and finance,from a new perspective.Second,this paper not only investigates impact corporate holding share of financial institutions have on its financing constraints from microcosmic view but also combines institutional environment factors from macroscopic view.It will be helpful to the research on the factors influencing the financing constraints of Chinese enterprises.