The Research On Financial Gonstramts Under Collectivize Operation

With the development of Chinese market mechanism,enterprises have achieved rapid development at this stage.The expansion of the scale has led to a substantial increase in corporate financing needs.However,there are still many problems in China's external capital market,so it cannot meet the rapid growth of financing needs of enterprises,and financing constraints have become a common problem faced by companies.In this situation,companies can obtain capital from the internal capital market.Therefore,alleviating financing constraints has become one of the major reasons why Chinese companies have conducted collectivization operation.Based on the existing studies,this article analyzes the impact of collectivization operation on financing constraints.First of all,this paper defines related theories and concepts.On this basis,this article introduces the development of collectivization operation in China,and outlines the financing constraints that China's enterprise groups faced.Afterwards,this article takes Fosun Group as a case to conduct a detailed analysis of its collectivization operation,and conducts research on the relationship between collectivization operation and its financing constraints.This article quantifies the financial constraints of Fosun Group through financial indicators such as dividend payout ratio and cash flow from financing activities.Through analysis,the results revealed that collectivization operation can effectively ease corporate financing constraints and enlarge corporate financing capacity,but the reduction of financing constraints will increase the financial risk accordingly.Expanding the sources of funds and improving the financing capacity are the main motives for companies to conduct collectivization operation.In the current environment,collectivization operation increasingly become the spontaneous choice for companies to ease financial constraints and expand their scale.This article will help the company to break through the bottleneck of financing,enhance the financing capacity,and promote a better development of enterprises.Also,it will help the government regulate the collectivization operation of the enterprise,which may maintain the stable development of China's capital market.