Related Party Transactions,Information Disclosure Quality And Financing Constraints

"Financing is difficult and expensive" has always been a bottleneck in the development of enterprises.Especially in recent years,with the deepening of China's economic restructuring and economic transformation and upgrading,the shortage of funds has become a huge obstacle to the survival and development of many enterprises.Although the government has repeatedly introduced policies such as cutting interest rates and lowering taxes to ease the pressure on corporate capital,financing constraints are still the main problems facing many companies.In particular,GEM listed companies,most of which are high-tech companies,are in a period of rapid growth,but their development time is still short and they face very high risks.Although the establishment of GEM in 2009 brought them an unprecedented financing platform,the financing difficulties of GEM listed companies have always existed.If the required funds are not available in time,the development of listed companies will become slow or even face stagnation.Therefore,financing constraints are important factors that affect the successful development of enterprises,and finding effective ways to mitigate is the key to successful financing and healthy development.The financing channels of listed companies can be divided into internal financing methods and external financing methods.In view of the information asymmetry and the high cost of financing,external financing faces many obstacles and high cost.At this point,transactions between related parties can play a role in easing financing.Through related party transactions financing can not only reduce financing costs to a certain extent and obtain funds quickly,but also promote the allocation of resources within the group and improve the efficiency of the use of funds,thus easing financing constraints.However,the phenomenon of "tunneling" in related party transactions has emerged one after another.Taking advantage of the concealment and complexity of related-party transactions,unfair transactions have been prohibited repeatedly.This is mainly caused by the inadequate disclosure of relevant information,which makes it possible for the related party transactions to backroom deal.Whether the informationdisclosure meets the requirements will also directly affect the financing ability of listed companies in the capital market.So in order to improve the quality of information disclosure,can related party transactions provide better serve to alleviate financing constraints? The research on these issues has important theoretical significance and practical value.Based on the background,this paper studies and draws on the advanced theoretical and practical experience of the existing research results at home and abroad,based on the internal capital market theory,the financing order theory,the information asymmetry theory,and the principal-agent theory,then defines the related party transactions,the quality of information disclosure,financing constraints and related method of measurement,after that,analyzes the relations among them.On this basis,an empirical study is carried out.This paper adopts the datas of GEM companies which occurs in 2010 to 2017,selects multiple financial indicators to structure ZFC index for measuring financing constraints by principal component analysis,further subdivides the related party transactions into the demand-related type and the return-related type,then carries out Logistic regression on the influencing factors of financing constraints.According to the regression results,the following conclusions can be drawn:(1)Related party transactions have a mitigating effect on financing constraints.The larger the size of the related party transaction,the stronger the mitigation effect on the financing constraints of the company.(2)When the quality of information disclosure is improved,the mitigating effect of related party transactions on financing constraints will be strengthened.(3)When the related party transaction is of a request type,the larger the transaction scale,the more it can ease the financing constraints;And when related party transactions are in the return type,the larger the transaction,the more constraints on financing.In addition,when the quality of information disclosure is improved,the mitigation effect of demand related party transactions on financing constraints will be further strengthened,and the negative impact of return related party transactions on financing constraints can be suppressed to some extent.In short,the higher the disclosure of information,the better the mitigation effect of related party transactions on financing constraints.Therefore,in order to effectively alleviate financing constraints,listed companies should actively play the role of related party transactions,especially demand-related party transactions,and improve the level of information disclosure.At the same time,the relevant government agencies should strengthen the related party transactions and information disclosure institution and legal supervision,so as to create a great-operating environment for the capital market.The research value of this paper lies in: to explore the role of related party transactions in financing constraints,and according to the interest flow of the transaction,it is subdivided into demand related party transactions and return related party transactions,and their respective ways of action are studied.In addition,the quality of information disclosure is introduced as the regulating variable.The related party transactions,the quality of information disclosure and the financing constraints are brought into the same framework.Further analysis is made on whether the effect of related party transactions on financing constraints has been improved under the influence of information disclosure quality,so as to provide more effective ways to alleviate the financing constraint for listed companies.