Research On The Influence Of Rich List On Corporate Financing Constraints

Funding is the blood of an enterprise.The development and growth of any enterprise cannot be separated from the support of funds.Chinese enterprises generally face financing constraints,and the funding problem has become a bottleneck restricting to the sustainable development of private enterprises.At the symposium of private entrepreneurs,General Secretary Xi Jinping pointed out that it is necessary to vigorously support the development and growth of private enterprises and solve the problem of financing difficulties for private enterprises.At the end of the Central Economic Work Conference at the end of the year,the central government will also effectively alleviate the problem of financing difficult for enterprises as one of the key tasks in 2019.Research on financing constraints has always been the focus of scholars,and it has important practical significance to solve the financing constraints of enterprises.Since the Hurun Rich List was first published in 1999,its influence in China has become increasingly grand.The attention of the media and the public has been very concentrated when the annual list was released.The listed companies associated with the list of rich people are also active in the public vision.In today's era of media prevalence,every move of the list and its affiliates has touched the attention of the media and the public,and may be "moving all over the body" at any time.The rich list attracted a lot of public attention and media reports,which reduced the degree of information asymmetry to a certain extent.At the same time,regal also faced the possibility that the company's related information was fully explored and even over-reported,bringing negative effects to the rich company.Then,what impact does the rich list have on the company's financing constraints?The existing literature has not been studied in detail.This study firstly reviews the relevant literature on the factors affecting the rich list and financing constraints at home and abroad.Then combining the institutional background of China's socialist market economy transformation and upgrading with the research situation of the rich list to make theoretical research,and then proposes research bias.The propensity score matching method was used to construct a control group,and the model was constructed by difference-in-differences for empirical analysis.Finally,the conclusion was drawn.The study found that the company's actual controllers on the rich list for the first time intensified the company's financing constraints.Further analysis found that the company's financing constraints were exacerbated by the increase in equity and debt financing costs,while the company's equity and debt financing scale was not affected.Finally,make relevant suggestions.This study not only expands the research on the economic consequences of the Rich List in China's unique institutional and cultural background,but also helps investors to further understand the behavioral characteristics of star entrepreneurs in the capital market,and provides a way for private listed companies to ease or avoid financing constraints.