Research On Influence Of Information Disclosure On Financing Constraints

Financing constraints represent the ease of corporate financing, which is due to information asymmetry. The presence of information asymmetry lead to that internal and external financing can not replace each other, and the cost of external financing is higher than that of internal financing. Financing constraints not only seriously affect efficiency of resource allocation in the capital market, but also limit the development of corporate themselves. In order to solve the problem of existing information asymmetry, improving the quality of information disclosure is one of the most important method.Nowadays, China is going through a transition economy phase, in which governments still play an important role in the resource allocation. So there is a great difference of government intervention in different major shareholders. Because of this, the influence of information disclosure on financing constraints is also different. This article specifically examines in different nature of ownership the impact of information disclosure levels can significantly reduce the enterprises'financial constraints.This article takes the method of combining normative research and empirical research, based on the theory of Information Asymmetry, Soft Budget Constraints, Signaling Theory, and Principal-agent Theory.By studying the task, the following conclusions are presented:(1) Improving information disclosure levels can significantly reduce the enterprises'financing constraints, and the enterprises with high quality information disclosure have more access to raise funds. (2) The effect also is influenced by ownership of enterprises. Relative to state-owned enterprises, the impact of information disclosure quality on financing constraints of non state-owned enterprises is more significant. (3) The differences also exist between central holding companies and local holding companies. Relative to local holding companies, the impact of information disclosure quality on financing constraints of central holding companies is more significant.