The Influence Of Holding Shares In Insurance Companies And Capital Structure On Enterprise Financing Constraint

Financing is very important to the development of enterprises.Expanding financing channels and reducing financing costs have always been one of the concerns in the theoretical and practical circles.With the development of China’s economic system and financial market regulation,more and more industrial enterprises have shareholding in the financial industry to obtain more credit support and enhance financial flexibility.As one of the important financial institutions,insurance companies have large capital and continuous financing ability,and have the function of investment appreciation and risk protection,thus attracting a lot of capital investment.Whether holding shares in insurance companies can ease the financing constraints of enterprises? As an important indicator for examining corporate credit capacity,what role does capital structure play in easing corporate financing constraints? This paper attempts to answer the above questions.This paper first summarizes the domestic and foreign research conclusions related to the integration of industry and finance,financing constraints and capital structure.At present,studies have confirmed that equity participation in financial institutions can effectively alleviate financing constraints.However,there are few studies on the mitigation of holding shares in insurance companies,and the impact of corporate capital structure on it.Then it makes a realistic analysis on the financing environment and capital structure of Chinese enterprises,as well as the development process of the enterprise’s shareholding in insurance companies under the mode of integration of industry and finance.Based on the data of A-share listed companies from 2011 to 2020,using the investment-cash flow sensitivity coefficient model and propensity score matching(PSM)to perform regression analysis,the research conclusions are as follows: holding shares in insurance companies can alleviate the financing constraints of enterprises;and for companies with high debt ratios,the relief effect is more significant.Finally,based on the results of theoretical and empirical analysis,this paper puts forward suggestions from the aspects of promoting the integration of industry and finance,preventing financial system risks,and strengthening policy guidance and regulation.There are three main contribution in this paper: Firstly,it improves the investment-cash flow sensitivity coefficient model used in existing research,using PSM to solve the endogeneity problem of sample self-selection.Secondly,it improves the research results of the integration of industry and finance on the mitigation of financing constraints by focusing on the the behavior that enterprises hold shares in insurance companies,which is a meaningful financing strategy for enterprises in the epidemic period.Thirdly,this paper confirms that the capital structure of an enterprise will affect the mitigation of financing constraints by holding shares in insurance companies,helping companies comprehensively evaluate their own financing capabilities.