An Analysis Of The Impact Of Financing Constraints On Enterprise 's "Going Out"

This paper used the data of Foreign Direct Investment and Export Trade origining from Firm-level Industrial data and Foreign investment of China from 2005 to 2014 to examine the relationship between financing constraints and enterprises going overseas. Firstly, this paper summarize the relevant literature about how financing constraints affect enterprises that go overseas, as well as the theoretical basis of financing constraints affecting export and investment. According to the theory of financing constraints summarized from the former literatures, this paper get the affect of mechanism and theoretical assumptions. Secondly, this paper selects the corporate financial statements proxies containing total profits, receivables and interest payments, measuring endogenous facing businesses, commercial financing and credit financing constraints exogenous variables. This paper uses the least squares method to construct time series models to analyze the influence of financial constraints.Finally, according to the type of ownership, the sample of companies is divided into state-owned enterprises, private enterprises, and foreign enterprises. This paper uses enterprise 2005--2014 financial data as time-series data and three types of ownership of enterprises as the individual variable cross-section, and uses of fixed-effects panel model to analyse influence of financial constraints with different ownership enterprises going overseas. The results showed that: Firstly, enterprises are facing three forms of financing constraints which will impact on export and investment, in which exogenous financing constraints affect most significantly; Secondly,considering the type of different ownership structure of enterprises,this paper found that state-owned enterprises and private enterprises are more vulnerable to financial constraints,compared to foreign companies; Thirdly, empirical analysis also found that firm scale and capital intensity as control variables will affect exports and business investment, in which it affects export more obviously. Finally, this paper give some correspondent policy according to the conclusions of influence of financial constraints. Firstly, from their own perspective, companies should enhance the competitiveness of enterprises and continuously improve the ability to create value and profits; Secondly, from the government point of view, they need to perfect the financial markets, optimize the financing environment, and expand financing channels for enterprises to ease financing constraints in order to help companies go overseas easily.