| Issue |
E3S Web Conf.
Volume 235, 2021
2020 International Conference on New Energy Technology and Industrial Development (NETID 2020)
|
|
|---|---|---|
| Article Number | 01029 | |
| Number of page(s) | 6 | |
| Section | Research on New Energy Technology and Energy Consumption Development | |
| DOI | https://doi.org/10.1051/e3sconf/202123501029 | |
| Published online | 03 February 2021 | |
Financing Constraints and Stock Price Volatility Empirical Evidence from Shanghai and Shenzhen A-share listed Companies
Southwest University, Chongqing, China
Based on the theoretical analysis of financing constraints and stock price volatility, the hypothesis of “corporate financing constraints inhibiting corporate stock price volatility” is proposed. After data cleaning, the cross-sectional data based on A-share was used to make an empirical analysis of the relationship between financing constraints and stock price volatility of listed companies in 2018 through regression model. The study found that when companies relax financing constraints, due to widespread overinvestment, the stock price of companies will fluctuate more. In addition, we have shown that by replacing the return of financing constraint indicators and the regression of subsamples based on enterprise size, market type and ownership, the conclusion of the study is more robust. The research reveals the mechanism of the impact of financing constraints on the volatility of corporate stock prices. The conclusions have practical significance for investors, corporations and relevant regulatory authorities.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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