Research On The Impact Of Private Enterprise Equity Concentration On Corporate Financing Constraints

In the key period of the transformation of Chinese economic growth from capital accumulation to innovation driven,private enterprises will be forced to seek a way out through innovation under the pressure of market,thus promoting the transformation of Chinese economy.The innovation of enterprises needs financial support,but private enterprises' financing difficulties and expensiveness have been restricting the development of enterprises and affecting the transformation and development of Chinese economy.Compared with the macrocosmic factors that affect enterprise financing,it is easier for enterprises to control the microcosmic factors that affect enterprise financing.The microcosmic factors that most scholars pay attention to is whether the enterprise's governance structure is reasonable or not.The ownership concentration is one of the most important indexes to measure the rationality of the ownership structure in the enterprise's governance structure.Therefore,this paper will study the financing constraints of private enterprises in China from the microcosmic perspective of ownership concentration.Starting from the theory,when the ownership concentration of private enterprises is relatively high,the supervision effect of large shareholders has been enhanced,which has reduced the company's equity agency cost.Meanwhile,the enhancement of the synergistic effect between major shareholders and small shareholders helps to reduce the cost of equity agency.Furthermore,The function of the reputation mechanism of the private enterprise is beneficial to reduce the agency cost.The reduction of the three types of agency costs will reduce the amount of capital that will be paid by the fund users to protect their own rights,which will help to reduce the financing constraints of enterprises.This paper selects 1195 private enterprises in China as the research object,extracts the data of 2011-2016 years of private enterprises,and uses the panel data model to carry out an empirical test.The empirical results show that the ownership concentration of private enterprises affects the financing constraints of the company.When the ownership concentration of private enterprises increases by 1%,the financing constraints of enterprises will decrease by approximately 2.29%.And the role of the relationship between the two is passed through the agency cost.When the ownership concentration of private enterprises increases by 1%,the three types of agency costs are reduced by approximately 4.25%,2.75%,and 0.98%,respectively,and the three types of agency costs are reduced by 1%.The financing constraints were reduced by approximately 0.013%,0.039%,and 0.085%,respectively.Therefore,this paper can provide some suggestions for the rational setting of equity structure,the quantitative control of agency cost and the establishment of effective external supervision mechanism of private listed companies in China.