How Does Equity Participation In Financial Institutions Affect Financing Constraints

In recent years,many enterprises have set foot in the financial sector by participating in financial institutions.One of the motivations for companies to participate in financial institutions is to obtain more credit support,that is,to obtain more external financing facilities.Under the background that China's capital market has not been perfected and enterprises are generally facing different levels of financing constraints,if a company's participation in financial institutions can indeed bring external financing facilities to enterprises,it can provide new ideas and ways for enterprises to ease financing constraints.In order to verify whether the participation in financial institutions can really alleviate corporate financing constraints,this article uses A-share non-financial listed companies as samples,using data from 2009 to 2018,through panel data multiple linear regression,and empirical analysis confirms that participation in financial institutions can effectively alleviate financing constraints.Furthermore,considering the impact of capital structure on the financing ability of enterprises,this paper takes the capital structure of enterprises into consideration,analyzes the regulatory effect of the capital structure of enterprises on the effect of easing financial constraints of participation in financial institutions,and finally proves that For enterprises with higher debt,the effect of easing financing constraints of participation in financial institutions is better.The results of the study support companies to make full use of the combination of industry and finance,and alleviate financing constraints by participation in financial institutions,especially those with a relatively high debt ratio.