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.
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Houhui Lv (2018) studied this question.