Research On The Governmental Behavior Of Small And Medium-Sized Enterprises Finance

SMEs play an important role in providing more employment oppotunities, promoting the development of industries, improving the comprehensive competitiveness and marketing economy system, promoting the adjustment of industrial structure, keeping the stability and development of society. Therefore SMEs are the most important part in national economy. But comparing to SMEs'contribution to GDP, they get less financial resources, which restrict their development. To solve this problem, many economic scholars and entrepreneurs propose valuable solutions to alleviate the problem to some extent. In order to tackle this problem completely, we need understand its root cause. China is still in the transition from planning economy to marketing economy, the government plays a vital role in this transition process and the government should give financial support to SMEs. Therefore it has both theoretical and practical meaning to research how to improve government financial supporting system to SMEs, by seeking countermeasures from the perspective of market failure based on learning from western countries experiences while taking our country's actual situation into consideration.To achieve this research goal, this paper comprehensively applies theories such as the Economics, the Finance, the Fiscs and the Management into the research. The main contents include the following three aspects: Firstly, identify financing and government behavior on the basis of summarizing related theories, classify the government intervention in the SME financing as direct and indirect intervention. Meanwhile discuss the relevant theories of Public Goods and Market Failure. Secondly, analyze the reasons of government intervention and the influence of Game Theory on all financing participants'behavior when overcoming financing difficulties. Finally, on the one hand, analyze the degree of influence of government behavior on SMEs financing through establishing Logit Estimate Model and Probit Estimate Model based on data from questionnaires about SMEs in 10 areas within Shanxi Province. On the other hand, discuss how government should intervene SMEs financing from three aspects of indirect intervention in SME indirect financing system, indirect intervention in SME direct financing system, and direct intervention.Analysis shows that first of all, government assistance can improve SME capital structure, and make the structure more reasonable under conditions of tax shield, liquidation restrain and information asymmetry. The changes of SME capital structure may help overcome their financing difficulties, make full use of social saving, make funds allocation more efficiently, increase social gross production and enhance sustainable development. Secondly, the paper finds the most important reasons for SME applying for business loans successfully are government assistance, their creditworthness, the operational scale and history after studying seven pairs of data from questionnaires. Finally, as for government indirect intervention, SME indirect financing system can be established by strengthening credit assurance system, building loan risk minimizing mechanism, risk compensation mechanism, positive stimulation mechanism and government loan platform. As for government direct intervention, SME financing environment can be improved through strengthening fiscal and taxation supporting system, setting SME public service platform and improving social credit system, organization supporting system, law supporting system and monetary policy system.The main innovative ideas of this paper are as follows:Firstly, this paper starts to discuss financing difficulties faced by SME by analyzing government behavior. Then classify government behavior related to SME financing, analyze reasons of government intervention, participant relationship and current situation. Finally put forward the measures government should take to intervene SME financing. All these would enrich the SME financing research.Secondly, This paper provides comprehensive definition on building feasible system through establishing strategy function between government and SMEs, setting models of tectonic both static game, dynamic game and mixed game, getting the best choice for each subject , and providing more complete definition for designing better feasible system, On the above basis, the paper establishes a decision function of institutions set by government and builds an dual agent model involving government, institutions and SMEs to analyze the optimistic choices of the three parties together with the systematic factors which affect the government decisions of setting up institutions to solve SMEs financing difficulties in order to provide valuable reference for establishing an effective encouraging system.Thirdly, when analyzing the reasons of government intervention in SMEs financing, the paper discusses how government support could help with improving SMEs'capital structure by using static analysis methodology and involving SMEs financing into capital structure theory model and economy growth model. When analyzing basic data from questionnaires, the paper discusses the effect of government behavior on SMEs by building Logit Estimation Model and Probit Estimation Model, and put all the influence factors in order according to their importance.