Degree Of Marketization, Establishment Of Subsidiaries And Financing Constraints

Due to China's vast territory,regional economic,cultural differences,the unequal distribution of resources,make the development of regional market economy there is a big gap,market economy is relatively developed eastern coastal areas,the Midwest market economy development is relatively slow,so the enterprise in that there is a big difference of how to raise funds for the enterprise development under the market environment is essential;The parent-subsidiary company came into being under the background of regional diversification.In this paper,from the visual Angle,subsidiary location selection,discusses China's listed companies in the domestic market environment under the condition of different,set up the subsidiary in market developed areas for enterprise financing constraints,what impact,then the influence of channels through which the specific studies was on,detailed discuss financing path,and the characteristics of financing of debt maturity structure.Financing constraints has been a hot academic topic,every enterprise development is closely connected with the financing,the financing cost of high and low is the enterprise financing more focus,there are a lot of scholars study of high regional marketization level,can reduce the enterprise's information search costs,corporate financing source diversity,so companies face financing constraints,smaller xing-quan Yang and Zhang Zhaona(2009)by private enterprises as samples,the study found enterprise marketization level is lower,the area of the more serious the problem of financing constraints.This article selects the Shanghai and shenzhen a-share listed companies from 2013 to 2018 as sample,manual to collect each of the listed company in the distribution of the set up subsidiaries in 31 provinces,combined with the fan marketization index,the cash-cash flow sensitivity index model carries on the regression analysis of the above problems,the following conclusions:(1)the group parent company in the market for the developed areas in China to set up subsidiaries can alleviate enterprise financing constraints.(2)compared with state-owned enterprises,it is more effective for private enterprises to set up subsidiaries in developed market areas to alleviate the financing constraints of enterprises.(3)the establishment of subsidiaries by the parent company in the developed market can increase the external borrowing of enterprises,thus easing the financing constraints of enterprises.(4)it is easier for the parent company of Chinese group to obtain short-term loans when setting up subsidiaries in the developed market areas,and the debt term is shorter.