| The report of 19th CPC National Congress pointed out that we should deepen institutional reform in the financial sector,strengthen the capacity of financial services to better serve the real economy,increase the proportion of direct financing,and boost the healthy development of capital market with multi-layers.As important intermediary institutions of capital market,securities companies provide convenient services for enterprise direct financing while playing the role of market organizer,liquidity provider and deal maker.In 2013,Shenzhen Stock Exchange issued the "information disclosure business memorandum No.41-investor relationship management and information disclosure" system(hereinafter referred to as the "system"),which marks the new era of information disclosure regulation in China’s capital market.Recepting investors’ site visits is an important activity of investor relationship management in enterprises.The activity enables the investigators to get the operating status of the listed companies in person,which not only reduces the degree of information asymmetry inside and outside the company,but alo reduces the degree of information asymmetry between investors,and protects the legitimate interests of investors.This paper is based on the institutional background of China,taking the opportunity of the promulgation of "system",combining normative research with empirical research,and using the theory of information asymmetry theory,principal-agent theory,efficient market theory and behavioral finance theory,based on information effect,supervision effect and signal transmission effect,this paper studies the effect and mechanism of analysts’ site visits on financing constraints,financing cost and scale.Using the data of listed companies in Shenzhen Stock Exchange of China from 2013 to 2018,this paper makes the following three empirical tests:Firstly,to examine how analysts’ site visits affects corporate financing constraints,and further to examine whether the impact of analysts’ site visits on financing constraints is different,and whether there are differences in the relationship between different types of analysts’ site visits and financing constraintsin.The study finds that:First,there is a negative correlation between the times of analysts’ site visits and the degree of corporate financing constraints.The research on financing theme can significantly alleviate the corporate financing constraints,while the research on strategic topics has no significant impact on corporate financing constraints.Second,the examination of influence mechanism verifies that analysts’site visits alleviates corporate financing constraint by reducing information asymmetry,alleviating principal-agent problems and attracting investors’ attention..The research conclusion is still tenable after using 2SLS and Heckman two-stage method to control the endogenous effects.Third,the research on the relationship between analysts’ site visits and financing constraints of enterprises with different property rights finds that analysts’ site visits play a more significant role in alleviating financing constraints of non-state-owned enterprises;the research on the difference between analysts’ site visits with different characteristics or types and corporate financing constraints finds that star analysts and non-associated analysts have a greater mitigating effect on the financing constraint of enterprises.At last,further analysis on the samples with strategic topics reveals that,more often and active tone may be helpful for the alleviation of financing constraints.Secondly,to examine how analysts’ site visits affects corporate financing cost and further to examine whether there are differences in the impact of analysts’ site visits on financing cost of different types of enterprises and whether there are differences in the impact of different types of analysts’ site visits on corporate financing cost.The study finds that:In terms of equity financing cost,first of all,the increase of the number of analysts’ site visits can significantly reduce the equity financing cost of enterprises.By analyzing the research contents,it finds that the research on financing theme and the research on strategy topics can reduce the cost of equity financing.The above conclusion is still valid after using 2SLS and Heckman two-stage method to control endogenous effects.Secondly,by investigating the relationship between analysts’ site visits and enterprise equity financing cost under different circumstances,it finds tha the impact of analysts’site visits on enterprise equity financing cost is more significant in firms with higher degree of information asymmetry and investors’attention.Finally,by investigating the relationship between the site visits of different characteristics or types of analysts and the cost of equity financing,it finds that star analysts and non-associated analysts have a greater impact on the cost of equity financing.In terms of debt financing cost,first of all,the increase in the number of analysts site visits can significantly reduce the debt financing cost of enterprises.By analyzing the research contents,it finds that the research on strategy topics can reduce the cost of debt financing,while the research on financing theme with active tone can significantly reduce the cost of corporate debt financing.The above conclusion is still valid after using 2SLS and Heckman two-stage method to control endogenous effects.Secondly,by investigating the relationship between analysts’ site visits and enterprise debt financing cost under different circumstances,it finds that the impact of analysts’ site visits on enterprise debt financing cost is more significant in firms with higher degree of information asymmetry and agency cost.Finally,by investigating the relationship between the site visits of different characteristics or types of analysts and the cost of debt financing,it finds that star analysts and non-associated analysts have a greater impact on the cost of debt financing.The conclusion above shows that the negative correlation between analysts’ site visits and corporate financing cost is not only influenced by the characteristics of site visits objects,but also influenced by the personal characteristics of analysts.Finally,to examine how analysts’ site visits affects corporate financing scale and further to examine whether there are differences in the impact of analysts’ site visits on financing scale of different types of enterprises and whether there are differences in the impact of different types of analysts’ site visits on corporate financing scale.The study finds that:First of all,with the increase of the number of analysts’ site visits,the amount of external financingincreases significantly,in which equity financing is significantly positive,while debt financing is not significantly overall.The analysis of the research content shows that the research on financing theme increases the external financing of enterprises,while the research on strategic topics has no significant impact on the external financing of enterprises.Secondly,the research on its influence mechanism shows that the increase of external financing is promoted by reducing information asymmetry,alleviating principal-agent problem and attracting investors’ attention.After using 2SLS and Heckman two-stage method to control endogenous effects,the conclusion is still valid.Thirdly,the research on the relationship between analysts’site visits and financing scale of enterprises with different property rights finds that analysts’site visits play a more significant role in increasing financing scale of non-state-owned enterprises;the research on the difference between analysts’ site visits with different characteristics or types and corporate financing scale finds that star analysts and non-associated analysts have a greater mitigating effect on the external financing scale of enterprises.At last,further analysis on the samples with strategic topics reveals that,more often and active tone may be helpful for the improving of external financing scale.The main contributions of this paper are as follows:First,it enriches the research on economic consequences of analysts’ site visits.Previous studies are limited to two aspects:the accuracy of analysts’ forecasts and the reaction of capital market.This paper focuses on the impact of analysts’ site visits on the financing constraints of listed companies,and further discusses on the impact on financing constraints’ specific performances--financing cost and financing scale,which is helpful to deeply dig into the influence mechanism of analysts’ site visits on enterprise financing behavior:information effect,supervision effect and signal effect.Secondly,it expands the research on the influencing factors of corporate financing constraints.Previous studies have shown that the macro-economic environment,internal governance structure and information disclosure level will have an impact on corporate financing constraints.However,as one of the important external governance mechanisms,how the analysts obtain private information and how the information content affects the corporate financing constraints are not discussed in depth.This paper studies its influence on corporate financing constraints from the perspective of analysts’ site visits and expands the research on the influencing factors of corporate financing constraints.Third,it improves the measurement method of analysts’ site visits.This paper adopts the text analysis method to judge the topics involved and the enthusiasm transmitted in analysts’ site visits,it is an improvement to the index of site visits activities which usually use the dummy variables and the times of site visits in previous studies.It enriches the research conclusion of this paper by deeply mining the information content of analysts’ site visits.Fourth,it expands the research on the heterogeneity of analysts.The existing research only discusses the economic consequences of analysts’ site visits from the single perspective of fund equity association.From the perspective of reputation and conflict of interest,this paper explores the impact of individual characteristics of analysts on corporate financing constraints,which is more comprehensive and specific.It not only expands the research on the heterogeneity of analysts,but also greatly enriches the research on the influencing factors of financing constraints.The conclusions of this paper provide empirical evidence and policy basis for stimulating the vitality of micro-market and standardizing the activities of enterprise investor relationship management,and at the same time provide enterprises decision-making basis for improving financing efficiency and realizing the goal of maximizing enterprise value. |
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