The Study Of Institutional Evolution And Performance Of Chinese SMEs' Indirect Finance

Since the goal of Socialism Market Economy was set up in China in 1994, the development of Chinese small and medium enterprise (SMEs ) entered into the new era because of their values of institutional exploration and innovation. So how to make up the fine external environment to promote the SMEs makes great sense. Finance environment and finance system absolutely of the most importance for the SMEs to develop soundly. So the topic "The study of institutional evolution and performance of Chinese SMEs' indirect finance" means the dissertation will explain the reason of the difficulty of the SMEs finance theoretically and empirically, and we will bring up some suggestions for the fine institutional environment to improve the finance efficiency of SMEs.The existing literature focused on the finance difficulty of the SMEs always analyzed the information distribution characters of the SMEs and finance sector, and even some discuss the matched measures. But in this dissertation, we think the former work can only explain the facts but the essence. We probe into the institutional arrangement for the SMEs, finance sector and other social regimes and find that the systemic institution innovation is needed to settle the finance difficulty of SMEs, which includes the new small and medium private finance institutes, thefine credit environment which will help the SMEs finance, the supervision efficiency of the government. All the measures impact with each other and help to solve the finance difficulty.We think the finance difficulty in China is not the same with in other countries, especially different from the developed countries because it subjects to the whole institution arrangements of China and holds the character of transformation. So the solution of problem will depend on the whole system reform. The im-performance of the former institutional change to solve the difficulty rely on the partial reform of the finance system. On the other hand, the reform should depend on the complexion so as to maintain the stability of the institutional framework and bring up the innovation of the institution. As a conclusion, the new small and medium finance institute should be drove from the existing finance sector and privatization gradually.The Institutional Economics is the base of the dissertation and the innovation in some analysis implement will form the framework; a new credit rationing model is made to explain the finance difficulty of SMEs; the positivism is important in this dissertation, so we analyze the outstanding investigate studies and do some econometric study of the public listing corporations. Besides, we study the Taiwan's experience in the SMEs finance system and the history of Chinese finance reformation .The innovations of this article include that: (1) we set up a newanalysis framework of demand and supply of institutional evolution and the partial equilibrium, which enrich the application of the framework in Chinese study; (2) we prove the financial difficulty of SMEs in China theoretically through the empirical study ,and the state-owned banks discriminate the loaner from size; (3) we explore the institution change experience for SMEs finance and analyze the finance performance through formal and informal institutions, which prove that the small and private banks are the sources for the SMEs finance; (4) the credit rationing model can explain Chinese problems practically despite of its simpleness ; (5)we set forth some feasible suggestions for crack out the difficulty in SMEs financing, especially we prove the credit guarantee system valuable for the difficulty in the game theory framework; (6)the empirical study shows that the banking privatization and the investment privatization will help the SMEs to solve the finance problem.