Enterprise Risk Management and Financing Constraints：Evidence from China's A-Share Non-Financial Listed Enterprises

With the development of the economy, risk management theory is constantly improving. Enterprise risk management (ERM) has been effective in internal auditing, financial management, and budget control. This paper empirically tests how the implementation of ERM by Chinese firms affects firms' financing constraints, using a treatment effects model based on data from Chinese A-share non-financial listed firms from 2006 to 2018. The study finds that the implementation of ERM significantly alleviates corporate financing constraints in general. Additionally, different ERM implementation strategies show differences in the impact on corporate financing. By examining the mechanism of the impact on financing constraints, this paper finds that implementing ERM improves the quality of firms' information disclosure and reduces systemic risk, thereby alleviating firms' financing constraints. This paper provides empirical evidence from a transitional economic context for theories related to ERM and new solutions for firms to alleviate financing constraints