The Background Traits Of Executives' Financial Connection?Transparency Of Accounting Information And The Financing Constrains

Continuous external financing is an important factor in promoting the rapid development of the enterprises. Financing constrains has become one of the important obstacles to restrict the update and transformation of our economic. Solving the problem of the financing constrains is the key to keep the continued development for the company. According from the report of the world bank, 75% of the listed company in China chose the financing constrains as the main obstacle to sustainable development. Referring to the influencing factors of the financing constrains, scholars from all over the world have propose the factors in different point of views. Based on the imperfection financial environment of China and the special “relationship” culture, this paper focus on the executives' interconnected financial, studying if the interconnected financial of the executives can ease the financing constrains. The upper echelons theory has put forward the viewpoint that the personal background characteristics of the executives can influence the enterprise's decision-making and the corporation value. So how the different financial background traits of the executives play a different role in releasing financial constrains is another research focus. At the same time, many scholars have proved that the disclosure quality of accounting information is one of important factors to influence the corporate financing constrains, as both regulators and investors improve the requirements of the disclosure quality of accounting information, this paper will also focus on that if the improvement of the transparency of accounting information can weaken the negative correlations between executives' interconnected financial and the financing constrains, and this substitution relation will varies from different personal financial background characteristics of the executives.We employ the listed company in Shenzhen stock markets form year 2010 to 2014 as our research samples, using the Almeida's cash-cash flow model to conduct the study. We find that:(1)the executives' interconnected financial is conducive to ease the financing constrains of the companies; the different background traits of the executives can play a different role in releasing financial constrains, the more working years spending on the financing institution can play a greater function on releasing financial constrains; Employing the executives with the bank-background will conduct a greater relief on the financing constrains than the non-bank background, however the years that the executives have leaving the financial institutions conduct no significant correlation with financing constrains;(2)on the whole, the gradually improvement of the accounting information transparency helps to reduces the financing constrains of the listed companies. what's more, the transparency of accounting information can substitute the executives' interconnected financial to mitigates the financing constrains of the companies, and this substitution relation will stronger when the company employee the executives with nonbank-background.