TITLE:
The Influence of the Combination of “Industrial and Financial” on the Investment Efficiency and Financial Constraints of Listed Companies —A Research Based on Holding Non-Listed Financial Institution of Listing Corporations in China
AUTHORS:
Houhui Lv
KEYWORDS:
Underinvestment, Overinvestment, Financial Constraints
JOURNAL NAME:
Modern Economy,
Vol.9 No.4,
April
16,
2018
ABSTRACT: This paper conducts an empirical analysis based on
the unbalanced panel data of China’s A-share non-financial listed companies in
2011-2016, and uses Richarson’s residual error measurement model to study the
influence of the integration of industrial and financial on investment
efficiency. To explore the mechanism of the integration of industrial and
financial on investment efficiency, this paper further uses a cash-cash flow
sensitivity model to study the influence of the integration of industrial and
financial on financing constraints. Results show that the integration of
industrial and financial can improve the investment efficiency of listed
companies. The integration of industrial and financial can mitigate
underinvestment by mitigating financing constraints.