The Relationship Between Financial Development and Financing Constraints in China

DOI

10.2991/978-94-6239-604-3_35How to use a DOI?

Keywords

Financial development; Financing constraints; Investment-cash flow sensitivity

Abstract

This study investigates financial resource misallocation stemming from “ownership bias” and “scale discrimination” within China’s high-quality development paradigm. Using 2011-2022 data from A-share non-financial listed firms, we find financial development significantly alleviates corporate financing constraints through reducing investment-cash flow sensitivity. The research provides empirical evidence on financial development’s micro-level effects in China, with methodological contribution through a provincial financial development index that effectively captures regional heterogeneity.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Weiyi Li
AU  - Tientip Subhanij
PY  - 2026
DA  - 2026/02/26
TI  - The Relationship Between Financial Development and Financing Constraints in China
BT  - Proceedings of the 5th International Conference on Economic Development and Business Culture (ICEDBC 2025)
PB  - Atlantis Press
SP  - 329
EP  - 338
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-604-3_35
DO  - 10.2991/978-94-6239-604-3_35
ID  - Li2026
ER  -