A Study On SME’s Investment & Financing System In Shanxi Province From The Perspective Of Information Asymmetry & Institution Boundary

The development of small and medium-sized enterprises has always been the focus of the community at home and abroad. And the investment and financing problems of SMEs are the core of its development. In the post-crisis period, the problems SMEs are facing threaten to the stability,recovery, innovation and development of the world economy. Therefore, how to effectively solve the investment and financing problems of SMEs has a significant influence on the reform and development of SMEs themselves as well as economic and social stability.This Paper regards its investment and financing problems of SMEs as the research objective with hopes to restructure the investment and financing system and improve its living environment. Some meaningful conclusions will be gotten by employing mathematical deduction, econometric analysis, survey research and comparative analysis methods.The first part mainly concerns about some basic elements of this paper:the background and significance, logical path, framework, methods and possible innovation points of this research.The second part is literature review. It first goes back to the relevant document at home and abroad and then set up the starting point of the research.The third part gives the theoretical basis and makes corresponding analysis of these theories such as information asymmetry, public finance and financial development and financial institution changes and further points out the far-reaching impact on the research involved. Correspondingly, the macro and micro frame of the research is shaped.The fourth part is the comparisons between Chinese practice and other countries’ and further finds out the similar characteristics and trends at home and abroad, which provides an important inspiration for building SME investment and financing system within the possible boundary the government and the market has determined in China.The fifth part analyzes the relationship between the development of SMEs and the financing system in Shanxi Province and finds that the features of SMEs’ development in Shanxi Province strengthen the endogenous defects of investment and financing, which leads to their lack of differentiated competitive advantage and the rules of the collective action. Also it finds new investment trends which highlights the core driving force of economic structural adjustment in Shanxi Province And meanwhile the changes of financing needs of SMEs need to diversify the financing system.The sixth part is about the research on the construction of competitive financial investment and financing system. On the basis of analyzing status quo, mechanism design and path selection of the system construction, the paper points that Shanxi has presented initial formation of SMEs financial investment and financing system with competitive characteristics and the heterogeneity in financial institutions has a greater influence on the construction of SMEs investment and financing system. And such methods helps to enhance the SMEs loan ability and improve the effectiveness of policies as the mechanism design differentiation, the improvement of lending technologies and the establishment of interconnection mechanism between different financial institutions.The seventh part is the analysis of the regional financial investment and financing system construction. The study finds that fiscal financing system helps to promote the abilities of SMEs investment and financing, but there are some defects such as low-efficiency support, imperfect market-oriented operation mechanism, poorly established investment and financing service system. Government investment and financing system has a crowding-out effect to SMEs. Thus, this paper presents a series of policy recommendations.The eighth part gives the research on the construction of spontaneous social investment and financing system. On the basis of theoretical and empirical analysis, it tells there is a symbiotic relationship between the private financial and SMEs, and the private lending has become an endogenous factor for the development of SMEs; private financial plays an important role in entrepreneurs screening mechanism, entrepreneurial risk diversification mechanism and enterprise innovation diffusion mechanism. Small and Medium Enterprises Association needs to restructure and expand its financial intermediary function.The nine part is conclusions and shortcomings.On the basis of these findings, there are there possible innovations in this article:First, based on the status quo of the current SME investment and financing system supply, this paper builds SMEs build three-dimensional system from the aspects of the financial, fiscal and social investment and financing. From the perspective of theory and practice, it discusses the macro and micro-mechanisms of SMEs investment and financing system and further gives the corresponding countermeasures and suggestions.Second, this paper sorts out the relationship between private investment and government investment in Shanxi Province, and discovers the trend and direction of private capital in the development of a comprehensive reform zones and transition economies. In the special structure of the resource-based economy, the short-term government investment on private investment has a guiding role and the crowding-out effect is more obvious in the long run; meanwhile,future private capital will become the core driving force of the economic structural adjustment; and private finance will play a more important role in the venture capital and nurturing the entrepreneurial resources.Third, the study finds that small and medium enterprises in Shan Xi Province have "small, scattered, low, coarse" features which leads to the lack of differentiated competitive advantage and the rules of collective action and strengthening its defects of endogenous investment and financing. To solve this problem, this paper provides some recommendations and suggestions.