An Empirical Analysis of Financing Constraints of Private Enterprises in China

To analyze the financing problems of private enterprises in China, this paper uses the financial data of A-share listed enterprises to construct four sets of Euler investment equation models. The empirical analysis of the models indicates that Chinese enterprises are generally facing financing constraints. However, compared with the state-owned enterprises, the financing constraints of private enterprises are more serious and common. To solve the financing dilemma of private enterprises, we need to deepen the structural reform of the financial supply-side, promote the transformation and upgrading of private enterprises, improve financial infrastructure and create a favorable financing environment.