An Empirical Study of Ultimate Ownership, Financing Constraints and Corporate Investment

As the core of the soft power of financial industry, the construction of financial cultural reflects the meaning of social responsibility of financial institutions. In recent years, private enterprises have become an important force in support and promote the stable growth of economic, and play an increasingly important role in expanding labor force. But at the same time, always accompanied by a strong financial constraints, they are faced with great limited in size and power. This paper analyses the investment spending and the sensitivity of internal cash flow of China's listed manufacturing companies with Euler investment equation, so as to study the financing constraints movements of enterprises with different proprietary, and this paper conducts robustness test with Tobin's Q-equation. We found that (1) listed manufacturing companies' financing constraints are obvious, and the private enterprises' financing constraints are obviously tighter than that of the state-owned enterprises; (2) during the researching period, the financing constraints of the state-owned enterprises showed a decreasing trend, while the financing constraints level of the private enterprises remained unchanged, which meant there existing excessive crowding-out effect of the state-owned enterprises over the private enterprises. It should be the key point to improve the financial system, create a fair financing environment.