Research On The Financing Constraints Of Jinggong Group From The Perspective Of Group Operations

Financing constraint is a common problem encountered by enterprises in operations,especially Chinese enterprises.Financing constraints will cause companies to miss good investment opportunities,reduce their investment efficiency,and are not conducive to the realization of enterprise value and long-term development.Therefore,how to alleviate the problem of financing constraints is an urgent issue for Chinese companies.At the same time,starting from the last century,companies of different nature have embarked on the road of group operation,and group companies have emerged at the same time,.Whether a group-type company can alleviate the financing constraints of the enterprise during the operation process.Through the introduction of the theory and the construction of the financial constraint theoretical model,from a qualitative and quantitative perspective,the group enterprise can alleviate the level of financing constraints of the parent and subsidiary companies in the operation process.The mitigation approach is mainly reflected in the operation of the internal capital market and the overall participation of the group in the external capital market.This article adopts a case study method,and based on the literature research,selects Jinggong Group for a case study of financing constraints.First,based on internal capital market theory,transaction cost theory,and information mismatch theory,analyze the path of group financing easing financing constraints,and then the financial constraint measurement model was used to calculate the Zifc index for the financial constraint measurement model applicable to Jinggong Group.Based on the financial statement data of the group and its subsidiaries,we can be calculate the financing constraint level of Jinggong Group.The research found that the whole Jinggong Group had a high level of overall financial constraints.The reasons for the high financing constraints of Jinggong Group were analyzed from two perspectives: internal capital market and external capital market.The internal financial market operations of Jinggong Group has some problems.For example,the cash flow distribution is inefficiency,the group's internal guarantees are unevenly distributed,illegal fund lending,and the group's overall financing structure is unreasonable.In the process of participating in the external capital market,Jinggong Group had debt defaults and problems with the subsidiary's equity pledge.All the above problems make Jingong Group and its subsidiaries face higher financing constraints.In the face of these problems,this article finally designed corresponding mitigation measures based on the theoretical path of group operations to alleviate financing constraints,in order to alleviate the financing constraints of Jinggong Group and its subsidiaries companies.This article combines the operations of group companies with financing constraints,and presents problems and solutions in the case of Jinggong Group.It is expected to provide some reference for the study of financing constraints and group enterprise problems.