Financing Constraints And Investment Of Listed Manufacturing Companies—an Empirical Study Of Cash Flow Sensitivity

According to the information asymmetry and optimal sequence financing theory,the company in the external financing will be affected by different degree of financing constraints,the presence of financing constraints makes external financing cost is higher than internal financing costs,due to the limited enterprise internal cash flow,when faced with financing constraints,enterprise investment decisions will be influenced by how much internal cash flow.Degree of financing constraints lead to different companies to invest in can make use of external capital is different,so will lead to different investment behavior of a company's own internal cash flow sensitivity.The purpose of this paper is to research the financing constraints and a-share motherboard of manufacturing listed companies in our country,the relationship between the investment-cash flow sensitivity of investment and financing constraints in company decision-making reliance on internal cash flow analysis,and creatively through the factor analysis method to construct A division of company financing constraint degree of comprehensive index,and the cash dividend into the research system.This paper adopted the A shares in Shanghai and shenzhen two city main board listed A mixture of panel data of 347 manufacturing companies,the sample is selected during the period of 2007 to 2016,the descriptive statistics and empirical study on the sample data.Through factor analysis in this paper,three factors which influence the company degree of financing constraints: the ability to resist risk factor,development capacity factor and the debt paying ability factor,and obtained by the three factors divided into comprehensive factor of degree of financing constraints.In the whole sample regression analysis,the investment expenditure of China's manufacturing listed companies is positively correlated with the internal cash flow.In accordance with the division standard degree of financing constraints comprehensive factor,the study found that the a-share manufacturing listed companies in our country finance and investment-cash flow sensitivity is associated with the degree of constraint,the cause of the relationship is between the company and outside investors information asymmetry problem.From the point of grouping regression results,low financing constraint group investment behavior is not affected by the internal cash flow,cash dividend distribution to a certain extent to inhibit excessive investment behavior,company managers and high financing constraint group investment behavior is closely related to the internal cash flow,cash dividend payment rate is related to its investment-cash flow sensitivity is,by distributing cash dividend can alleviate the negative impact of the financing constraints,bring to the company.