Financing Constraints, Non-efficiency Investments And Corporate Risks

The relationship between financing constraints and corporate risks has always been a hot issue for many scholars.Most scholars believe that it is precisely because of the existence of financing constraints that the investment of enterprises is limited,thus increasing the risk of enterprises.Such a study has a premise that the investment of the enterprise is neutral,neither insufficient investment nor excessive investment,but in reality,such enterprises are few and far between.Most companies are not in an under-investment or an inefficient investment in over-investment.Thus,the impact of financing constraints on corporate risk may differ due to differences in its own investment behavior.Therefore,this paper will classify enterprises from the perspective of investment,and separately study the impact of financing constraints on under-investment and over-investment enterprise risks,and supplement existing theories.Through analysis,this paper mainly draws the following conclusions:The financing constraint has a heterogeneous impact on non-efficiency investment enterprises.It validates the establishment of the hypothesis of this paper.At the same time,according to the relationship between financing constraints and non-efficiency investment enterprise risks mentioned in the conclusion,it puts forward the direct financing channels of listed companies,smoothes indirect financing channels,optimizes internal corporate governance mechanisms,and strengthens auditing efforts.