Board Secretary's Financial Experience and Financing Constraints: Based on the Empirical Study of NEEQ

Information asymmetry is an important factor which causes the financing constraints of National Equities Exchange and Quotations (NEEQ) firms. Based on higher order theory and informal institutional theory, secretaries with financial experience tend to disclose the financial and operating conditions of firms more efficiently, and keep a good relationship with financial institutions, thus reducing the cost of information asymmetry and easing the financing constraints. This study takes the NEEQ listed firms from 2012 to 2017. The results show that the secretaries with financial experience tend to ease the financing constraints. This result is still robust after the endogeneity controlled by Propensity Score Matching (PSM) and Differences-in-Differences (DID).