Abstract: By making use of the data of the combined financial statements of China’s holding listed companies of enterprise groups during the period of 2013-2015, this paper employs the PSM method to empirically test the effectiveness of the establishment of financial companies by the enterprise groups. The findings show that the establishment of financial companies by enterprise groups would significantly increase the current financial risks, the operational risks and the comprehensive risks in the listed companies, while no significant impact on their performance and financing constraints. Furthermore, in the second year after the establishment of the financial companies, the financial risks, the operational risks and the comprehensive risks of the holding listed companies of enterprise groups are more or less decreased, while the performance is more or less increased, but there still exist significant differences in financing constraints.

Key words: financial company; enterprise risks; financing constraints; performance