Corporate Social Capital,Financing Constraints And Investment Efficiency

With the continuous deepening of socialist market economy,China's economy has achieved rapid and steady development.The revival and rise of the private economy has made great contributions to our country.But at the same time of rapid development,private economy is facing some problems.On the one hand,greater demand for investment and fund shortage led to overinvestment and underinvestment;on the other hand,because of the limitation of its structure and external business environment,private enterprises are facing many constraints in the external financing,and their investment will also be affected.Private enterprises are in their selves actively looking for more ways to eliminate the adverse effects.The relationship between government and enterprises and the relationship between banks and the enterprises which are two elements of corporate social capital have been paid more and more attention.The inefficient investment will bring bad influence to the long-term development of private enterprises.Therefore,the analysis of the situation of the investment efficiency of private listed companies,the relationship between Financing constraints and investment efficiency and the role of corporate social capital will make sense to the development of private economy.Based on the review of domestic and foreign literature,this paper defines the basic concepts of corporate social capital,financing constraints and investment efficiency.Based on asymmetric information theory,pecking order theory credit rating theory and principal-agent theory,this paper analyses the relationship between Financing constraints and investment efficiency.This paper use 2013-2015 A-share private listed companies as research samples,constructs the corporate social capital index and financing constraints index and makes an empirical study on the relationship between corporate social capital,financing constraints and investment efficiency hoping to provide some recommendations to private listed companies.Through the study,the following conclusions have been drawn:(1)at present,the investment of China's private listed companies is inefficient and there is more underinvestment than overinvestment;(2)financing constraints will reduce investment efficiency and make more overinvestment;(3)the existence of corporate social capital can change the relationship between financing constraints and investment efficiency,mitigating adverse effects of the influence of financing constraints on investment efficiency.