Capital Market Liberalization And Enterprise Financing Constraints

Following the implementation of the "Shanghai Hong Kong Stock Connect" policy,the "Shenzhen-Hong Kong Stock Connect"-the interconnection mechanism for stock trading between Shenzhen and Hong Kong was officially launched on December 5,2016.Another two-way expansion marks the further optimization of the interconnection mechanism between the mainland stock market and Hong Kong stock market,making cross-border investment more convenient,and more foreign investors participating in A-share trading,upgrading the investor structure of the mainland capital market,It is of milestone significance in the process of Liberalization up China’s capital market.Against the background of the central government’s proposal to build a new development pattern that focuses on the domestic macro cycle and promotes both domestic and international dual cycles,this article uses the quasi natural experiment of the implementation of the "Shenzhen-Hong Kong Stock Connect" policy as a breakthrough to explore the easing effect of capital market Liberalization on financing constraints of Chinese enterprises,which has certain practical significance,helps to clarify the key links to be smooth in the new development pattern,and formulates relevant countermeasures,"Seeking new opportunities in crisis and Liberalization up new situations in changes".This thesis first introduces the process of the Liberalization and liberalization of China’s capital market,and then explains the implementation of the Shenzhen-Hong Kong Connectivity Policy in detail.Combining with the literature of excellent scholars,it comprehensively analyzes the economic Consequences of the Liberalization of the capital market and the causes of corporate financing Constraints,and analyzes the impact of the Liberalization of the capital market on corporate financing Constraints.Then,according to the information asymmetry theory,principal-Agent theory,investor cognitive hypothesis,pecking order financing theory and signal transmission theory,analyze the impact of capital market Liberalization on enterprise financing Constraints and the specific impact path.Finally,the research hypothesis is proposed to verify the impact and mechanism of the Shenzhen-Hong Kong Stock Connect policy on corporate financing Constraints through empirical analysis.First of all,this thesis takes the data of Shenzhen A-share listed companies from 2013 to2020 as the research object,uses the double difference model to explore the easing effect of the further Liberalization of the capital market on the financing Constraints of Chinese enterprises,and uses the intermediary effect model to test the intermediary effect of the quality of information disclosure,Agency costs and the participation of foreign institutional investors in the process of the implementation of the Shenzhen-Hong Kong Stock Connect policy affecting the financing Constraints of enterprises.Secondly,the influence of the nature of the ultimate controller of the enterprise,the Size of the enterprise,and whether the separation of the two functions of the enterprise on the implementation effect of the "Shenzhen-Hong Kong Link" is explored through the sub-Sample regression.The empirical results show that:(1)the implementation of the "Shenzhen-Hong Kong Link" policy can al Leviate the financing Constraints of enterprises;(2)From the perspective of mechanism,the implementation of the "Shenzhen-Hong Kong Link" policy can al Leviate the financing Constraints of enterprises by improving the quality of information disclosure,reducing Agency costs and increasing the participation of foreign institutional investors;(3)The heterogeneity analysis shows that compared with state-owned enterprises,the implementation of the "Shenzhen-Hong Kong Link" policy has a greater degree of easing the financing Constraints of non-state-owned enterprises;Compared with small-scale enterprises,the implementation of the "Shenzhen-Hong Kong Link" policy has a greater degree of easing the financing Constraints of large-scale enterprises;Compared with enterprises with high separation of two jobs,the implementation of the "Shenzhen-Hong Kong Link" policy has a greater degree of easing the financing Constraints of enterprises with low separation of two jobs.