The Study Of Enterprises' Investment Behavior Under Financing Constraints

Financing constraints is prevalent in the enterprises of China, the existence of financing constraints have profound impact on corporate investment behavior. This paper from both theoretical and empirical analysis of financing constraints on corporate investment behavior, and propose corresponding policy recommendations .First, in reference to business investment equation and the utility function equation of the function. We build three models of financing constraints on corporate investment behavior. And discuss two cases, one company is not suffer financing constraints, and second, enterprises subject to financing constraints, contrast corporate investment behavior in both cases, the results indicate that the existence of financing constraints make corporate investment behavior changes.Second, drawing on domestic and foreign financing constraint index selection method, we build a classic investment cash flow sensitivity equation, and introduce asset-liability ratio, cash holdings, financial slack, the main business revenue growth rate as the control variable. Empirical analysis of financing constraints on corporate investment behavior. And in the process of testing make a distinction between firm size, to examine the financial constraints on the impact of investment companies of all sizes.Finally, in summarizing the theoretical and empirical part of the research, this paper examines the different financing methods impact on business investment and corporate finance constrained by internal and external, and then proposed the corresponding policy recommendations.