Financial Marketization,Financing Constraints And Corporate Performance

The relationship between financial marketization trends and economic development is a hot issue that many countries are concerned about.Corporate performance is one of the important performances of a company's business operations.The availability of external financing resources can provide long-term sustainable sources of funding for companies and help improve corporate performance.Our country has a vast territory and the process of marketization started late.The level of financial marketization in various regions is uneven.This makes it possible for local financial market development to expand access to corporate financing resources,increase the sources of funds for corporate operations,and solve the problem of further expansion of production scale and reasonable investment by enterprises,thus improving corporate performance.This paper takes the data of A-share listed companies from 2010 to 2014 as a sample to empirically examine the impact of regional financial marketization on corporate performance.The study finds that regional financial marketization can promote the improvement of corporate performance by alleviating the degree of corporate finance constraints,and the lower the level of financial marketization,the stronger the financial constraints,the more positive the effect of financial marketization on firm performance is.With further research and analysis,it is found that the higher degree of regional financial marketization,the stronger enterprise innovation,the better corporate performance,and corporate innovation are conducive to the improvement of corporate performance.On the other hand,the regional financial marketization has a more positive effect on the performance improvement of private enterprises,SMEs,and central and western regions.Finally,according to the research conclusions,the government and enterprises are proposed on how to do a good job of the marketization trend of China's financial structure.