Institutional Investors, Property Nature And Financing Constraints

Financing is one of important behaviors that ensure the enterprise to survive and develop. The production and operation, project investment, even future development can’t depart from the financing. However, information between money demander and suppler is not transparent, and agency costs exist, all of them result in it is not easy to receive money from capital market. In the process of external financing, the enterprise is often limited and costs a lot. External costs are general high and financing constraints problem is widespread.In recent years, non-tradable shares reform has been constantly promoted, accompanied by the flourish of institutional investors. The shareholding proportion of institutional investors has increased and the variety of institutional investors has become different. Besides, the government has introduced related laws and policies to promote institutional investors hold. Its positive role in the capital market and the effective mechanism get more and more people’s attention. Due to stronger information mining and passing ability as well as can participate in corporate governance, institutional investors are able to solve the problem of information asymmetry and agency costs, so as to alleviate the degree of financing constraints. However, because of the control of the state-owned enterprise, the role of institutional investors in financing constraints can be discounted. So, it is necessary to consider property nature in the process of researching the relationship between institutional investors and financing constraints under the background of our country.This paper is divided into the following six parts:The part one is the introduction. This part of the paper mainly introduce background, the research of theory and realistic meaning, then expound research methods and research purposes, a simple introduction of the overall framework, and at the same time to illustrate the innovation of the research.The part two is the literature review. According to the article research content, this part from the effect of institutional investors participating in corporate governance, the relationship between institutional investors and financing constraints, the relationship between property nature and financing constraints, the effect of institutional investors participating in corporate governance under the condition of the property nature to carry on the literature review.The part three is the related theory and research hypothesis. This part first defined three concepts, consist of institutional investors, financing constraints and property nature, and then studies the theoretical basis and combined with the theoretical basis to analysis, including the theoretical basis and analysis related to institutional investors, financing constraints and the state-owned enterprises’soft budget constraint theory, finally on the basis of relevant theory to explore the mechanism and put forward the assumption of this paper.The part four is the research design. This part is mainly to select the sample and data, establish research model and research variables based on the forward part’s to prepare for the next step.The part five is the empirical test and the result analysis. Basing on the sample, this paper carry out descriptive statistics, correlation analysis, regression analysis and the robustness test.The part six is the research conclusion and suggestion. This part is to summarize empirical research results, give some suggestions, point out the shortage of this article and indicate the development direction of the future research.Innovation point of this article is to change the past study of institutional investors’governance effect. This article researches institutional investors from the financial vision, and combine institutional investors and financing constraints, complementing research content of this field. In addition, many listed companies under state control in our country, and the state stock position is strong. The production and operation of the state-owned companies are often transferred by the government’s purpose and will. As a result, whether the institutional investors can play a role in state-owned company is questionable. So, it is meaningful to add property nature in researching the relationship between institutional investors and financing constraints.