Research On The Impact Of Financing Constraints On Corporate Financing Behavior Preferences

Pecking order theory has been praised highly in the western developed country’s corporate finance practice,but the domestic scholars ’ empirical research,which discussed the financing preference of companies at home,found that there existing a kind of financing preference of listed companies in our country,namely equity financing preference,which is inconsistent with Pecking order theory.However,the author adopts the data of China’s manufacturing listed companies to conduct empirical research in 2010-2016 but finds that there is no obvious preference for equity financing in China’s manufacturing listed companies,and the share of equity financing in the financing structure of the company is low.In this dissertation,the logistics regression model is used to calculate the financing constraint index,multiple financial indicators are used,the index divides China’s manufacturing listed companies into high financing constraint group and low financing constraints group as a comprehensive measurement index of the degree of financing constraints.Then it adopts the Ordered-Probit regression model to study the choice of financing methods of manufacturing listed companies in the case of financial constraints.Finally,a descriptive statistic method is used to obtain the financing structure preference of listed companies in the case of financial constraints.Unlike previous studies,in this dissertation,the empirical results indicate that at the presence of financing constraints,China’s manufacturing listed companies financing order and financing structure selection,basic to follow the optimal sequence financing theory;When there is capital requirement,the company will choose the internal financing,external financing would be a second choice;When choosing external financing,debt financing will be the first choice,followed by equity financing;When choosing debt financing,the company would prefer short-term debt financing,followed by long-term debt financing.Without financing constraints,the companies’ financing methods and financing structure selection are preferred by short-term borrowing financing;the order of the rest of the financing options varies greatly between the two decisions.The overall financing structure of the listed companies of the manufacturing industry follows the pecking order theory,and the overall financing mode selection is rather different from the pecking order theory.On the basis of empirical analysis,this dissertation analyzes the manufacturinglisted companies financing order and the causes of structural sequence,and puts forward three suggestions on China’s Manufacturing Companies’ finance rationalization,that is actively take long-term debt financing;reduce the dependence on short-term debt financing and create a good financing environment.Finally,limitations and intending research direction are pointed out.