| Since 1978, the reform and opening up, China is experiencing the promotion of financial liberalization by financial sector reform. Along with the deepening of China's financial reform, enterprise external environment and internal environment has undergone profound changes. Under conditions of external financing uncertain, the most important issue that enterprises face is financing. Does financial liberalization really help weaken the financing constraints, which is the academia and the industries have always been of concern.This paper systematically review the measurement of financial liberalization at home and abroad, financial constraints and investment-the relationship between cash flows related to the research literature. According to available data, this paper use liberalization of interest rates and capital account openness variable as a substitute for financial liberalization.It was used the market rate of interest on behalf of the domestic financial market-oriented, making use of subjective valuation method to measure when measuring the index value; while measuring the extent of China's financial openness, this paper use capital account liberalization on behalf of it, making use of principal component analysis to measure it.In the financing constraints conducting examination, this paper uses below data: 1999-2008, Shanghai and Shenzhen A-share listed companies as samples, base on the FHP model and panel data, uses models to test China's financial liberalization to see the impact of the company's financing constraints. Studies have shown that, the liberalization of interest rates indeed reduce the company's financing constraints, but the role of the capital account openness, however, to some extent by increasing the financing constraint. This paper also examines financing constraint in nine key industries, such as automotive industry. The results show that in our country, financial liberalization ease financial constraints in some industries. |
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