A Study on the Impact of Financing Constraints on Inefficient Investment Behavior of Listed Firms

Financing constraints, as one of the key factors affecting the investment decisions of listed enterprises, are directly related to the inefficient investment behavior of enterprises in terms of their existence and degree. In order to analyze the influence mechanism of listed enterprises' inefficient investment behaviors, a study on the influence of financing constraints on listed enterprises' inefficient investment behaviors is proposed. Combined with the information asymmetry theory, the SA index is used as a proxy variable for financing constraints, and a multiple linear regression model is constructed to test the impact of financing constraints on the inefficient investment behavior of listed enterprises. The empirical results show that financing constraints significantly exacerbate the inefficient investment behavior of listed enterprises, which is mainly manifested as underinvestment; while in a relatively loose environment of financing constraints, although enterprises may obtain more investment opportunities, they may also lead to overinvestment due to overconfidence or agency problems.