Welcome to Francis Academic Press

Academic Journal of Business & Management, 2021, 3(7); doi: 10.25236/AJBM.2021.030720.

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


Shuai Li1, Junjie Ling2

Corresponding Author:
Shuai Li

1Glorious Sun School of Business and Management, Donghua University, Shanghai, 200050, China

2School of Economic and Management, Wuhan University, Wuhan, Hubei, 430000, China


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. 


Manufacture, Financing constraint, Ownership Concentration, Financial Performance

Cite This Paper

Shuai Li, Junjie Ling. Financing Constraint, Ownership Concentration and Financial Performance——Empirical research based on Chinese listed manufacturing firms. Academic Journal of Business & Management (2021) Vol. 3, Issue 7: 122-126. https://doi.org/10.25236/AJBM.2021.030720.


[1] Harris R, Trainor M. Capital Subsides and Their Impact on Total Factor Productivity: Firm-Level Evidence from Northern Ireland [J]. Journal of Regional Studies, 2005, 45(1): 49-73.

[2] Lei Ni. Research on the mechanism of the Impact of Financing Constraint on the performance of Private Firms in Zhejiang [D]. Zhejiang University of Finance and Economics, 2014.

[3] STEVEN NKAPLAN, Research on Financing Constraint in Investment Flows [J]. Journal of Finance and Economics, 2010, 30 (4): 195-201 Journal of Economics, 1997, 112 (1): 169-215.

[4] Kaushik, N., & Chauhan, S. (2019). The Role of Financial Constraint in the Relationship on Working Capital Management and Firm Performance. IUP Journal of Applied Finance, 25(1), 60-82.

[5] Badia M M, Slootmackers V. The Missing Link between Financial Constraint and Productivity [R]. Working Paper, 2009.

[6] Hovakimian G. Financial Constraint and Investment Efficiency: Internal Capital Allocation Acrossthe Business Cycle [J]. Journal of Financial Intermediation, 2011, 20 (04): 246-283.

[7] Xi Pu, Jingwen.Yu .The impact of ownership concentration on corporate credit constraint: an estimation based on structural equation [J]. Journal of Guangdong college of commerce, 2013, 28(02): 30-39.

[8] Huiyang Zhou. Research on the influence of Ownership concentration on financing constraint of private Firms [D]. Shanghai Normal University, 2018.

[9] Liping Xu, Yu Xin, Gongmeng Chen. Ownership concentration and ownership checks and Balances and impact on Corporate Performance [J]. Economic Research Journal, 2006(01): 90-100.

[10] Zengquan Li, Qian Yu, Xiaokun Wang. Tunneling, support and MERGER and Reorganization: Empirical evidence from Chinese listed companies Economic Research Journal, 2005(01): 95-105.