Financing Constraint, Ownership Concentration and Financial Performance——Empirical research based on Chinese listed manufacturing firms

Abstract

Taking A-share manufacturing listed companies from 2013 to 2019 as samples, this paper utilizes OLS regression model to test the relationship between financing constraint and financial performance under the adjustment of ownership concentration. The results show that there is a negative correlation between financing constraint and financial performance of manufacturing firms, and ownership concentration played in an inverted U shape to adjust them.  The conclusion of this study is helpful for manufacturing companies to formulate reasonable equity allocation strategies, under the financing constraint to enhance financial performance.