Research On The Impact Of Financial Development On The Financing Constraints Of Listed Manufacturing Companies

This paper mainly research the impact of financial development on the financing constraint of manufacturing listed companies in China,that is to say,analysing the role of macro financial development on micro enterprise's behavior.First of all,the research hypothesis is put forward on the basis of the previous research and the theory of information asymmetry and the theory of financial development function,Then the hypothesis is tested empirically.In the empirical part,we use the coefficient of cash flow to verify the existence of financing constraints and the coefficient of the cash flow and financial development cross term to verify the impact of financial development on financing constraints in Chinese enterprises.In the study,the investment-cash flow sensitivity represents the degree of corporate's financing constraint.Further,by using the data of listed companies in 2010-2014 years,selecting manufacturing listed companies as the research sample,using the regional financial development index and the Euler equation investment model to test the impact of macro financial development on the micro economic entities' financing constraints from the company's financial level,we provide empirical evidence on the role of financial development to promote economic growth.The research shows that:(1)The coefficient of investment-cash flow sensitivity in Chinese manufacturing listed companies is significantly positive,and there is a general financing constraint phenomenon.(2)Financial development effectively alleviates the financing constraint of the whole manufacturing industry.The results show that financing constraint is an important obstacle to the development of Listed Companies in China,and the promotion of financial development has a positive effect on the investment of listed companies.Therefore,the article put forward the corresponding policy suggestions at the end.In order to promote investment and economic growth,government,listed companies and financial institutions should make efforts to improve Chinese financing environment based on different perspectives.The meanings of this article lie in:(1)Exploring the micro mechanism of financial development to promote economic growth and understanding of the role of financial development in economic growth deeply,the role of financial development to ease financing constraints enable enterprises to grasp the opportunities and ultimately promote economic growth;(2)The research on external financial environment which affects financing constraint is carried out to provide reference for enterprise's financing.The financing constraint of enterprises is not only influenced by their own factors,but also decided by the level of financial development in the region to a large extent.This paper tries to prove the effect of financial development on the enterprise's financing constraint.It provides a reference for the enterprise to improve the decision of financing,and provides the basis for the government to improve the level of the local financial development.(3)This paper examines the impact of financial development on financing constraint of Chinese manufacturing listed companies from three aspects of financial scale,financial structure and financial efficiency.It involves the different effects of different aspects of financial development.It is expected to put forward some suggestions for the Point of view to future financial development.