Artificial Intelligence and Corporate Innovation: Corporate Restructuring and Financing Constraints

Abstract

Can corporate mergers and acquisitions alleviate their own financing constraints? Previous studies on financing constraints mostly focused on the measurement of financing constraints and their effects on enterprise performance but did not deeply discuss the transmission mechanism of enterprise behavior to financing constraints. This paper uses the financial data of Chinese listed companies and the database of mergers and acquisitions to measure the financing constraints by investment cash flow sensitivity and SA index and analyzes the influence of mergers and acquisitions on financing constraints. The empirical results show that the acquisition behavior of listed companies can alleviate the financing constraints of enterprises, and this mechanism has a more obvious effect in the post-financial crisis period. Moreover, combined with the actual situation in China, the functions of enterprises with different acquisition methods and different equity attributes will be different. But on the whole, with the rise of financial instruments and Internet finance, it is also a good strategy for enterprises to use a variety of financial instruments to carry out mergers and acquisitions to ease financing constraints.