Abstract
The difficulty of financing for small- and medium-sized enterprises is an important problem that has plagued China’s economic development for a long time, so it is of great practical significance to explore how to solve the problem of financing difficulties for small- and medium-sized enterprises. From the perspective of financial structure, this paper introduces it to the analytical framework of the investment-cash flow sensitivity model, and establishes a two-way fixed effect model on the basis of the financial structure and other external financing conditions, so as to study the impact of the financial structure in China, especially the banking structure, on the financing constraints of small- and medium-sized enterprises. At the same time, the data of 161 listed companies on the Small and Medium Enterprise Board from 2009 to 2013 is used to carry out an empirical test on the correlation between the financial structure factors and the financing constraints of small- and medium-sized enterprises. The study shows that the promotion of the scale ratio of small- and medium-sized enterprises in the banking industry is able to significantly alleviate the financing constraints of small- and medium-sized enterprises. Meanwhile, the structure of the banking industry should adapt to the industrial structure, in order to achieve the sustained and stable development of the real economy.
Highlights
At the present stage, the downward pressure of China’s economy has increased
On the basis of previous studies, this paper focuses on the impact of financial structure factors on the financing constraints of small and medium enterprises in China, and establishes an econometric model for the empirical test, so as to find out the external conditions that affect the financing of small- and medium-sized enterprises, and to explore the optimal arrangement for the financial system, as well as to provide some relatively effective suggestions for the current financial reform
Through the above theoretical analysis and empirical test, we can draw a conclusion that the optimization of the financial structure is able to alleviate the financing constraints of small- and medium-sized enterprises
Summary
The downward pressure of China’s economy has increased. In 2017, GDP grew by 6.9% over the same period last year, and the growth rate of GDP has been less than 7% in the past three years. As the main force of Chinese economic development, small- and medium-sized enterprises, on the one hand, have relatively dense labor and flexible operating mechanism to make them have comparative advantages, which can better adapt to the characteristics of Chinese industry and promote economic growth. The central bank requires the state-owned banks to increase loans to small- and medium-sized enterprises and to raise the floating range for the interest rate of their loans, which has little effect, and leads to the intensification of financial risks It is not in line with the endogenous principle of specialized division of labor within the credit market. Fifth Section: It is the conclusions and suggestions to reveal the practical significance of the empirical test, and to put forward some policy suggestions for the current financial reform
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