The Banking Background Of Directors、financial Constraints And The Companies’ Investment

Manufacturing industry is the main part of China’s national economy.In 2019,the proportion of manufacturing value-added in GDP was 27.17%,and manufacturing investment accounted for about 30% of China’s fixed asset investment.The main reasons is that manufacturers are facing financing constraints.In the nine years from 2010 to 2018,the loan proportion of the manufacturing industry decreased from 26% to 18%,and the problem of difficult and expensive financing for manufacturing enterprises,especially private enterprises,became increasingly evident.Based on the Upper-echelons Perspective,information asymmetry theory and social capital theory,this paper explores the influence of senior executives’ banking background on the financing constraint of enterprises,and further explores the influence on enterprises’ investment.This article select A shares in 2010-2019 1792 manufacturing enterprises as the research sample for empirical research,get the following conclusions:(1)business executives with banking background can alleviate enterprise is faced with the problem of financing constraints;(2)the financing constraints faced by enterprises will have an inhibiting effect on their investment;(3)the banking background of enterprise executives can alleviate the financing constraints faced by enterprises and promote the investment of enterprises,and this effect is more obvious when the financing constraints are strong.(4)compared with state-owned enterprises,the banking background of enterprise executives has a more obvious promoting effect on the investment expenditure of private enterprises.Based on the above research conclusions,this paper puts forward the following Suggestions:(1)enterprises: first,the quality and credibility of enterprise information disclosure should be improved;Second,by hiring senior executives with banking background to establish bank-enterprise connection channels;Third,improve the internal environmental governance structure.(2)the government: first,we should improve the financial and economic system and raise the level of economic development;Vigorously promote the establishment of bank-enterprise relations,policies to encourage the combination of industry and finance.The research of this paper begins with theoretical analysis and ends with empirical research.The research conclusion expands the research content of "relational lending",enriches the related research on bank-enterprise relationship,and makes certain contributions to the research on the influence of senior executives’ characters on corporate lending behavior.