A Research On The Influence Of Institutional Investors On Financing Constraints

"How to reduce corporate financing costs and ease financing constraints is a key part of supply-side reform" President xi jinping told a panel of experts on the economic situation in July 2016.Looking at the economic development of our country,the problem of enterprise financing is indeed a thorny problem to restrain the development of enterprises.In recent years,as our country has advanced the equity allocation,institutional investors have also developed faster.Institutional investors have significantly improved in categories and proportions,and our government has formulated relevant laws and regulations and policies to guide institutional investors in a more healthy and orderly development.In the reality of imperfect capital market,enterprises generally face difficult financing problems,especially for private enterprises with no state-owned background.However,the problem of principal-agent problem and information asymmetry in the enterprise has aggravated the external financing cost of the enterprise,thus increasing the difficulty of enterprise financing.After reading a large amount of literature,there is literature indicating that the participation of institutional investors can reduce the financing difficulty of enterprises,but whether this conclusion is practical in the private enterprises is still to be discussed.After reading a large number of literature related literature,this paper selected the Shanghai and shenzhen two city in our country of Chinese private listed firms from 2014-2016 sample data,after the analysis of comparative measure of financing constraints,the Almeida-cash flow sensitivity of cash first study under the generalized model of institutional investors and the Shanghai and shenzhen two city of Chinese private listed companies financing constraints,according to the qualitative method to research the classification of the heterogeneity of institutional investors in China with Shanghai and shenzhen two city private listed companies financing constraints.The results show that institutional investors can reduce the financing constraints of private listed companies in China.Institutional investors in the pressure sensitivity of institutional investors of Chinese private listed companies financing constraints ease is not obvious and pressure resistance of institutional investors of Chinese private listed companies financing function reduce obviously.