Financial Ecological Environment,Internal Control Quality And Financing Constraints

The perfect capital market does not exist in real life,information asymmetry and principal-agent problem are common,making the corporate financing behavior by different degrees of constraints and restrictions.Internal control as an important internal management mechanism of modern enterprises,the improvement of internal control quality provides more effective accounting information for external investors,enhance information transparency and improve the corporate governance structure,help to ease the coporate financing constraints due to information asymmetry and agents problems.In addition,the financial ecological environment as an external macro-environment for business operations,a good financial environment often means that the business environment in which the government is better governance,less market intervention,economic development and financial development,system and integrity culture construction is more perfect for enterprises to provide a more adequate external resources and financing opportunities,which will undoubtedly ease the financing constraints of enterprises.Firstly,this paper reviews the literature at home and abroad from three aspects:financial ecological environment,internal control quality and financing constraints.Secondly.on the basis of information asymmetry theory,principal-agent theory and signal transfer theory,the impact of financial ecological environment and internal control quality on financing constraints is analyzed in detail,and four hypotheses are proposed.Then,the data of China's A-share listed companies in 2010-2015,the use of empirical methods for testing.The empirical results show that:(1)the improvement of internal control quality can alleviate the financing constraints faced by listed companies.(2)the improvement of financial ecological environment can alleviate the financing constraints faced by listced companies.(3)In alleviating the role of financing constraints,the improvement of the financial ecological environment and the improvement of the quality of internal control there is a certain substitution effect.That is,the improvement of the quality of internal control is more helpful to alleviate the financial constraints faced by the companies with poor financial environment.Moreover,the improvement of the financial environment has a more significant effect on the financing constraints of the companies with low internal control quality.(4)The more perfect the government governance,economic foundation,financial development,system and honesty culture in the financial ecological environment,and the mitigation effect of' the financing constraints on the companies with low internal control quality is more significant.Finally,according to the previous theoretical analysis and empirical results,from the improvement of financial ecological environment and improve the quality of internal control at two levels,proposed some relevant recommendations to ease the financing constraints.