Research On Combination Of Production And Finance And Corporate Financing Constraints

The combination of industrial capital and financial capital is a business activity that many listed companies choose to carry out.At the same time,the concept of financing constraints has also been a research hotspot in corporate finance.Because of the above,this article attempts to make relations between the combination of production and finance and financial constraints of domestic listed companies to carry out research in oreder to make the financing constraints add some possible additional findings.This essay bases on cash-cash flow sensitivity basic model and cash-cash flow sensitivity extended basic model,this paper empirically studies the financing constraints of listed companies.In this study,it is also be concerned about the difference of financial constraints under different nature of property rights and different degree of regional financial development for various categories of listed companies.This article based on China's A-share non-financial listed companies of Shanghai and Shenzhen from 2013-2014 as the research sample to empirical estimate.The effect of combining production with finance to ease corporate financing constraints will be reflected in reducing the sensitivity of cash holdings to internal cash flow.In this article,it is also set up a Cross item of cash flow and the participating financial institutions to reflect the incremental impact of financing constraints from participating financial institutions.The main conclusions of this paper include:(1)There is a significant positive cash-cash flow sensitivity in China's listed companies,which shows that China's listed companies commonly excit financing constraints,and that participating financial institutions can significantly ease the financing constraints of listed companies;(2)Private enterprises Participating financial institutions have greater mitigation effects on financing constraints than state-owned enterprises.(3)High financial development areas have greater mitigation effects on financing constraints than low financial development areas.Finally,this paper combines empirical results and makes policy recommendations.