Corporate Strategy,Institutional Investor And Financing Constraints

In the high-speed development of modern economy,it is particularly important to have sufficient funds.However,most enterprises in our country have more or less financing constraints.In our country,financial reform still needs to be continued,and the securities market also needs to be further standardized and improved.Under this environment,domestic banks are more cautious in lending,thus making it difficult for enterprises to raise large amounts of funds from banks to a certain extent,especially small and medium-sized enterprises.If an enterprise wants to take the lead in the fierce competition environment,the satisfaction of financing needs becomes an important factor.Therefore,financing constraints hinder the development of the enterprise to a certain extent.There are many factors that affect financing constraints,which can be divided into internal factors and external factors from the perspective of enterprise environment.Many scholars have studied the influence of financial development and the relationship between government and enterprise on financing constraints from both external and internal perspectives.Enterprise strategy,as an internal factor affecting financing constraints,affects the whole development direction of enterprises and should be paid attention to.We know that enterprise strategy is the program of enterprise's economic behavior,the cornerstone of enterprise's healthy development,and guides the enterprise's daily business activities.Therefore,different strategies adopted by enterprises will present different management objectives,corporate culture and organizational framework.When investors make investment decisions in the capital market,they will examine the company's development prospects from various aspects.Enterprise strategy is a very important consideration.If an enterprise's strategy is more radical,its operational risk and financial risk are also increased to a certain extent,and the monitoring cost of investors is also increased.Besides considering the overall risk of the market,investors will also demand a higher market risk premium to make up for the risk they bear,thus increasing the financing cost of the enterprise and limiting the financing scale of the enterprise to a certain extent,thus causing the financing constraints of the enterprise and having a profound impact on the development of the enterprise.From this,it can be seen that the influence of enterprise strategy on the company's financial practice has become very important in the modern environment.Based on the above considerations,this paper explores the impact of enterprise strategic radicalization on financing constraints.At the same time,with the continuous improvement of China's securities market,institutional investors have also developed rapidly,playing an information advantage different from individual investors and occupying a place among investors in the securities market.Institutional investors will have a strong will to actively participate in corporate governance in order to safeguard their own interests and ensure their own capital preservation and appreciation,thus reducing agency costs between corporate entities and stakeholders.At the same time,institutional investors will use their information advantages to transfer information to relevant investors in a timely manner,which will also improve the transparency of the company's information,increase investors' confidence,reduce the degree of information asymmetry and ease financing constraints.Through the above consideration,this paper verifies the three aspects of institutional investors and financing constraints,corporate strategy and financing constraints,and the role of institutional investors in corporate strategy and financing constraints,and draws the final research conclusion according to the empirical results.We know that institutional investors have great differences in terms of investment duration and investment purpose,so their impact on the company is also different,and the degree of mitigation in terms of information asymmetry and agency costs will also be different.Therefore,this paper refers to the previous literature and divides institutional investors into two types:stable type and transaction type from the perspective of time and industry.Further verify whether the two have the same moderating effect on corporate strategy and financing constraints.The structure of this paper can be divided into the following parts:The first part is an introduction,which mainly explains the research background of writing and the significance,content and methods of practical theoretical and practical research,and introduces the research framework and possible innovations of this paper.The second part is a literature review,which mainly summarizes previous scholars' research results on institutional investors,financing constraints,institutional investors and financing constraints,corporate strategy and financing constraints and so on,and on this basis makes a literature review of the above research results.The third part is related theory,concept discussion and research hypothesis.Firstly,it introduces the definition of institutional investors,financing constraints and corporate strategy,and puts forward the research hypothesis based on principal-agent theory,information asymmetry theory and pecking order theory.The fourth part is the research design,which expounds the data selection,the model,the setting of relevant variables and the quantitative methods,providing a basis for the demonstration of the empirical results.The fifth part is the empirical result analysis,which mainly supports the hypothesis from descriptive statistical analysis,correlation analysis and regression analysis,thus providing some data support for the hypothesis verification.At the same time,different methods are used to test the robustness.The sixth part is the research conclusion and enlightenment,which is supported by theory and data,summarizes the research results of this paper,makes further thinking,expounds the enlightenment and suggestions brought by this paper,and puts forward further prospects and deficiencies.The contribution of this paper may lie in:(1)studying the influence on financing constraints from the aspect of the company's strategic radicalization.Through the summary of the relevant literature at home and abroad,it can be found that there are few documents discussing the impact of corporate strategy on financing constraints.Therefore,this paper chooses to combine the degree of corporate strategy radicalization with financing constraints for empirical research.(2)Taking institutional investors as moderating variables,this paper analyzes their moderating role between corporate strategy and financing constraints,and further tests the external governance role of institutional investors.