The Effect And Mechanism Of Management Intonation On Corporate Financing Constraints

Financing is of decisive significance to the survival and development of any enterprise,and financing constraints have brought considerable obstacles to the current domestic enterprise operation.However,at present,under the double blow of the armed war in Russia and Ukraine and the COVID-19 pandemic,systemic risks in the global economy have intensified.The real economy is in a very bad environment and has suffered a particularly severe blow.At the same time,China is in a critical stage of economic development and the transformation of old and new driving forces.Under the background of the rapid development of technological innovation and digital economy,the concept of high-quality development also puts forward more stringent requirements for Chinese enterprises,which not only makes many domestic enterprises face considerable severe challenges,but also makes the financing needs of enterprises more urgent.Subsequent financing constraint problem will become even more prominent.Generally speaking,a relatively light degree of financing constraint will lead to the lack of sufficient operating funds inside the enterprise,which will make the enterprise lack of investment chips for high-quality external investment opportunities,and eventually the development is blocked or even stagnant.However,when the degree of financing constraints is extremely severe,it may cause the entire industry to shrink,resulting in the overall macroeconomic decline and systemic economic collapse.Under the background of difficult financing for enterprises and highly asymmetric market information,the tone of management texts has attracted the attention of scholars.On the one hand,considering the particularity of China’s capital market,the information disclosed by management texts generally has a high degree of information value,which can fully alleviate the factors of information asymmetry in financing constraints.On the other hand,the words about tone and emotion in the management’s text are often the part that investors pay the most attention to,and the information contained in them is easily spread in the market.Therefore,this paper proposes a research hypothesis: the tone of management text can affect the degree of corporate financing constraints.With the above conjectures and assumptions in mind,this paper finds through the analysis of existing literature that the research on corporate financing constraints has two main characteristics.On the one hand,most of the research only starts from the objective financial data of the company itself,and lacks the impact of subjective information disclosure such as text tone on financing constraints.On the other hand,Most studies from a macro perspective also focus on the overall financial environment and national economic policies,while the role of information disclosure in management tone is rarely mentioned.Therefore,it is necessary to analyze the relationship between management text tone and corporate financing constraints.From an objective point of view,the financing constraint suffered by enterprises is not only related to the unsmooth information between investment and financing parties,but also has an inevitable connection with financial institutions’ reluctance to restrict loans.The communication between the management and investors through earning communication conferences can not only reduce the information asymmetry between the company and investors,but also release positive and optimistic information.At the same time,financial institutions can enhance the control of corporate information,increase the attention of banks and other financial institutions to enterprises lacking high-quality capital,and then promote the injection of capital into enterprises lacking capital,so that the financing constraints of enterprises can be eased.Therefore,it is of practical significance to study the influence of management text tone on corporate financing constraints.Based on the above situation,based on the logical clues to improve information asymmetry,this paper focuses on the incremental information of the management text in the performance presentation of listed companies,and focuses on the impact of the tone of the management text on corporate financing constraints.This paper takes all A-share listed companies in Shenzhen Stock Exchange and Shanghai Stock Exchange from 2009 to 2020 as the research object,extracts the text tone from the earning communication conferences of listed companies,quantifies the level of financing constraints with investment-cash flow sensitivity,controls other related variables related to the level of corporate financing constraints,and uses the double-fixed effect model for empirical estimation.Finally,by means of robustness test such as substitution of core explanatory variables,the following conclusions are drawn :(1)The text tone of earning communication conferences of listed companies is negatively correlated with the level of corporate financing constraints;(2)The tone of the management’s text in the earning communication conferences of listed companies affects the level of corporate financing constraints through the transmission path of information asymmetry.(3)For the bank-dependent enterprises,the text and tone of the earning communication conferences of listed companies has a greater impact on the financing constraints of enterprises.