| Since the financial crisis in 2008,with the slowdown in economic growth and the improvement of business operating costs,enterprises are facing the situation which they are difficult and costly to obtain financing and it have become an important factor affecting China's economic development.In order to alleviate this dilemma effectively,the government has issued a series of relevant policy documents,through the encouragement and assessment measures promote commercial banks to provide more financial services to meet the financing needs of enterprises.Meanwhile,they are also promoting the banking market reform actively.Trying to build the banking system with high coverage,different business,efficient service,and also close to the market demand,then it can support the economic development of different levels,different industries and different fields.In particular,since 2014,the process of banking reform has accelerated significantly,which is presented as the number of small and medium-sized banking financial institutions and market share are rising,the degree of bank loan competition has been significantly improved.However,compared with the reality,the academia research about the the influence of banking market structure on corporate credit availability started later in China,the relevant research is still inadequate.As we know,the logic of the current banking market reform is mainly based on the development of a number of small and medium-sized banks to match the size of small and medium-sized enterprises,by promoting the bank's loan competition to ease the low-availability of small and medium enterprises crefit.However,the information hypothesis theory have told us that because of the asymmetry of information,commercial banks which in competitive credit markets may not have sufficient incentive to invest in enterprise information production,in contrast,it will exacerbate the credit constraints of corporate credit constraints.Therefore,is a competitive banking market structure or a monopoly of the banking market structure could improve the enterprises' financing difficulties significantly after the financial crisis;Also,we should know the mechanism of action which the banking market structure affect corporate financing constraints.In addition,which type of bank is more helpful in improving corporate finance constraints? Will be able to improve the current corporate financing environment completely only by optimizing the bankingmarket structure,is the reform of relevant credit environment and the legal environment is also important to improve the current corporate financing constraints?The previous studies on these issues have not been discussed in depth,However,only these issues are figured out,we can provide data support and policy advice to improve the corporate financing environment and the specific path to optimize the banking market structure.Therefore,the paper use a survey date of the World Bank about China enterprise operation and a statistics date of the China Banking Regulatory Commission.On the basis of analyzing the current situation of China's banking market,this paper investigates the effect of banking market structure on enterprise' credit constraints after financial crisis,Moreover,the paper also discusses the mechanism of banking market structure after we divided the enterprise sample into bank credit constraints and self credit constraints.Then,the paper also test whether there is a "small bank advantage" hypothesis between China's bank and enterprise borrowing,and examine which types of bank is more helpful to alleviate the financing difficulties faced by the enterprises,to provide guidance in the process of the reform of the banking market structure in China.Finally,the paper not only examines the relationship between the credit environment,the legal environment and the financing constraints of enterprises,but examines whether the improvement of the credit and the rule of law environment can further improve the banking market reform to alleviate the role of corporate finance,so as to provide a systematic solution to improve the China's corporate financing constraints.Through the study,the following conclusions have been drawn :First,we find that:(1)overall,the banking market competition eases obstacles to obtaining finance.(2)This impact is different for enterprises of small,medium,and large size.Bank loan competition focuses on medium and large enterprises.However,for small enterprises,banking market structure's impact is not significantly which is different from previous studies.Moreover,the paper also discusses the mechanism of banking market structure after we divided the enterprise sample into bank credit constraints and self credit constraints.We also find that the banking market competition reduces enterprises' self credit constraints which caused by “Application procedures were complex”,“Interest rates were not favorable”,“Collateral requirements were too high”reasons,but it does' t affect the credit constraints which is caused by bank credit approval decision.Second,we find that:(1)Large banks prefer providing loans to large enterprises,while small banks would like to offer loans to small and medium enterprises,that means China's banks do have a "scale matching" effect when lending to enterprises.This result are set up whether in the overall sample or in the manufacturing or service industry enterprises sample.(2)In the use of bank lending technology,transaction-based loan technology has become a common choice for different sizes banks,“small bank advantage” theory consider that small and medium banks are better at using relational loan technology is not established.On the contrary,compared to small and medium banks,large banks are more likely to provide credit loans to small and medium-sized service enterprises.In addition,even in the use of transaction-based loan technology,there are some differences between banks of different sizes.The loans provided by the big banks for enterprises are more in the form of fixed asset collateral and asset support loans,the loans provided by the big banks for enterprises are more in the form of credit rating loans and other asset mortgages.Third,the social credit environment and legal environment are also important factors affecting the financing of enterprises.Empirical result show that:(1)In general,improving the credit environment and legal environment are helpful to the efficiency of bank credit allocation and improve corporate financing constraints.However,for different scale,different industries of enterprises,bank credit corruption improved the credit availability of large scale service enterprises.Meanwhile,significantly reduced credit availability of small and medium-sized manufacturing enterprises.(2)In addition,By improving the city credit environment,,enhancing the transparency of bank loans and strengthening the rule of law will help to enhance the banking market structure's effect on improving the allocation of credit resources and efficiency.Overall,the conclusion of this paper means that: at the stage of economic growth slowed down,corporate credit constraints and the cost of financing at a high level,the policy which current government adopted by the "development of a number of small and medium-sized banks matching the small and medium enterprises ",by optimizing the banking market structure,improving the level of bank loans to ease the financing of corporate financing difficulties is appropriate,but also we should pay attention to large banks' s role in the SME credit constraints,it reflect form large banks are more willing to provide credit loans to small and medium-sized service enterprises.At the same time,in the process of optimizing the banking structure,we need to gradually improve the social credit environment and the legal environment,only in a perfect legal and credit environment,banking market reform can play a greater role to improve corporate finance.The innovation of this paper is mainly reflected in the following aspects:First,different from the existing literature study the corporate credit constraints only from one aspect of the market structure of the banking industry,this paper start from improving the path of banking market structure,investigates the impact of banking market structure on the enterprise financing constraints and its mechanism,then from the bank scale,lending technical side analyzing which types of banks are helpful to improve the enterprise financing constraints,also the paper investigate the effect in the reform of credit environment and legal environment and other relevant supporting measures.Finally,the paper puts forward the concrete path of the reform of the banking market structure and the systematic solution to improve the credit availability of enterprises.In second,when we study the mechanism of banking market structure,we proposed the enterprise financing constraints may be bank decision-making results may also be caused by the decision-making of the enterprise,which is different from the previous literature research.Then we classify the enterprise financing constraints on different types,investigating the mechanism of banking market structure.Third,when examining the differences in the use of loan technology by different banks,it is different from the fact that most researchers use the intensity and breadth of the relationship between banks and enterprises as the relational loan technical indicators,adopt the fixed assets level of enterprises and whether they have audited financial statements as an agent variable of transactional loan technology,the paper identifies the relational and transactional loan technology by whether need collateral and the type of collateral when bank provide enterprises with credits,thus complementing the existing research.Fourthly,in examining the impact of the credit environment on corporate financing constraints,it is different from the existing literature using administrative corruption as an indicator of the credit environment to analyze its impact on corporate financing constraints.The paper argues that,compared to administrative corruption,the role of bank credit corruption is more direct;at the same time,compared to administrative corruption,bank credit corruption is more harmful,more likely to leadto financial risks.Therefore,bank credit corruption can be better measure the credit environment of banks and enterprises.Further,according to the microcosmic data of China's investment environment of enterprises in 2005,this paper measures the credit corruption environment of Chinese banks,reflects the ccorruption degree of bank credit at city level objectively and truthfully. |
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