An Empirical Study of Financial Development, Financing Constraints and Corporate Investment

This paper aims to analyze the effect of financial development on micro economic entities,in order to provide basis for the enhancement of economic growth thanks to financial development.This paper uses the data of Chinese listed manufacturing companies between 2001 and 2006 as the research sample,shows that: ① The investment of Chinese listed companies is highly sensitive to cash flow,so there is obvious financing constrains phenomenon;②Financial development has eased the enterprises’ financing constraints,and the financing constraints are more significant in low level of financial developed areas than those in high level areas;③ State-owned enterprises faced bigger financial constraints than mon-state owned enterprises,and financial development significantly eased the financing constraints for state-owned enterprises,but for non-state owned enterprises,the easement is not obvious.