EMPIRICAL STUDY OF FINANCIAL CONSTRAINT AND STOCK RETURNS IN CHIAN STOCK MARKET
Rui Zhang · Journal of Shaanxi University of Science & Technology · 2011
In this article we first construct an index with the Logistic Model to assess the financial constraint,and then we use the index as the measure of financial constraint to do empirical research of the relationship between financial constraints and stock returns.The results show that: in the nine categories of portfolio that is grouped by market value and financing constraints,in the case of middle,high market value,stock return rate increase as the increase of financial constraints.And we find that in the same financial constraints group,the company′s stock returns are positively correlated with each other,which supports the existence of financial constraint factor.