Analysis on Influence of Financial Constraint of Enterprise's Investment-Empirical Analysis of Listed Companies in Manufacturing Industry

Basing on taking into account the characteristic of Chinese corporations and securities markets and else economic condition, using new panel data of manufacture industry in Chinese securities markets, this paper gives a study on the relation between financing constraints, uncertainty, and corporate investment. The results show that the cash flow and uncertainty have significant effects on the investment. With increasing return of equity, the investment-cash flow sensitivity is increasing. Bigger corporations and corporations with higher profit level show sensitivity to uncertainty. Our advice is that the government must create equitable conditions of financing and circumstance of economic stabilization.