| It has currently become an objective requirement that the cultivation of new agricultural business entities shall be accelerated to promote high quality development of rural economy with the implementation of strategy for rural revitalization.Considering that agricultural production and management is characterized by long period,high input and high risk,although new agricultural business entities have objective demands for financing during the production and management process,financing through proper channels is often subject to various restrictions imposed by such financial institutions as banks.Therefore,the financing demands are met at a low rate.Faced with dual risks in natural disasters and marketing during production management process,new agricultural business entities may be subject to further intensified financing constraints.As a consequence,it has become an urgent problem to be studied and solved that the challenge confronting new agricultural business entities during financing should be tackled.So,the author believes that,at the present stage,it is of great necessity to further study the financing demand and characteristics of new agricultural business entities,to explore the main causes of supplyoriented financing constraints on new agricultural business entities from the perspective of credit risk,to investigate the effects of agricultural guarantee and agricultural insurance on relieving the financing constraints on new agricultural business entities,to improve risk sharing and risk compensation system,and meanwhile to explore a feasible method to relieve the supply-oriented financing constraints on new agricultural business entities by giving a full play to the guiding role of the government and integrating all resources from governments,banks,guarantors,insurers,entities,etc.In order to study and also solve the above issues,the research has been carried out on supply-oriented financing constraints of new agricultural business entities from the perspective of credit risk management in this paper.The research consists of four steps i.e.status description-theory analysis-empirical study-application suggestions.The specific contents are as follows:First,research literature both at home and abroad has been reviewed,representative viewpoints of the existing research have been summarized from the perspectives of the importance of financing constraints on new agricultural business entities,the characteristics of financing demand,causes of and solutions to financing constraints,the role of agricultural guarantee and insurance in relieving financing constraints,etc.,and the objectives,ideas and methods of this research are presented against the shortcomings in the existing research.Second,on the basis of defining core concepts such as ?new agricultural business entities? and ?supply-oriented financing constraints?,taking financing constraint theory,credit rationing theory and rural finance theory as main basic theories,this research uses classical models of the above theories,such as the credit rationing theory model,to illustrate the causes and essences of financing constraints on new agricultural business entities,and deduces a theoretical frame to relieve financing constraints on new agricultural business entities with two tool selections – agricultural guarantee and agricultural insurance,which is taken as the research methodology and analysis basis.Third,in-depth description and analysis have been carried out for the risk environment and financing constraints facing new agricultural business entities from the perspective of risk perception,according to the results of three groups of questionnaires from three types of new agricultural business entities including family farms,farmers' cooperatives and agricultural industrialization enterprises as well as banks' employees involved in rural credit business.A questionnaire survey on financing constraints was conducted among 88 new agricultural business entities in the province,and then descriptive analysis was made for basic characteristics,financing need,credit availability,financing guarantee and purchase of agricultural insurance of new agricultural demonstration business entities based on 1150 valid questionnaires collected as the source of sample data.Then a questionnaire survey was also carried out among bank employees mainly engaged in agriculture related credit business in the province from the perspective of credit provider in order to know the thoughts and understanding of banking institutions of financing constraints on new agricultural business entities.A total of 610 valid questionnaires were collected,and statistical analysis was carried out to understand such subjective information as banks' attitudes towards credit risk of new agricultural business entities,judgment on the influence of agricultural guarantee and agricultural insurance on credit decision-making,and the degree of recognition of government intervention in various forms such as financial discount,policy oriented agricultural guarantee and policyoriented agricultural insurance.Finally,discussion is made on the causes of supplyoriented financing constraints on new agricultural business entities from the perspective of credit risk management;then,research hypothesis is proposed based upon the above theoretical analysis and the investigation into financing supply and demand.Fourth,a multi-dimensional empirical study has been implemented based on the collected questionnaire data of new agricultural demonstration business entities.The effect of supply-oriented financing constraints on new business entities were measured after building an oprobit model.Based upon the existing theories and literatures,land scale,asset size,and schooling of the principals are absorbed into the model as the control variables;some analysis results on the contributing factors that influence the supplyoriented financing constraints for new agricultural business entities are taken into consideration;and then the impacts of agricultural guarantee and agricultural insurance on new agricultural business entities are respectively tested.The specific research was designed to introduce agricultural guarantee and agricultural insurance as main explanatory variables into the preset model,in order to check whether these two main explanatory variables can significantly reduce the financing constraints of new agricultural business entities.In view of omitted variables,both agricultural guarantee and agricultural insurance were finally included into the model to check whether they can significantly relieve the financing constraints on new agricultural business entities.The main conclusions of empirical study are as follows:(1)Agricultural guarantee may significantly relieve financing constraints.But the effects of agricultural guarantee on different subjects may differ.The conclusions indicate that financing guarantee plays a significant role in risk sharing and information dissemination in the field of agriculture,provides credit enhancement for new agricultural business entities,improve the situation of information asymmetry between borrowers and lenders,and makes it more convenient for new agricultural business entities to obtain credit from such financial institutions as banks.However,it has been found during heterogeneity test that agricultural guarantee may play a different role in relieving financing constraints on family farms,farmers' cooperatives and agricultural industrialization organizations.In particular,agricultural guarantee can significantly relieve the financing constraints on family farms,followed by farmers' cooperatives.However,its effect of relieving financial constraints on agricultural industrialization organizations is not obvious.(2)In the case of insurance only,the relieving effect of agricultural insurance on financing constraints of new agricultural business entities is not obvious.The possible reason is that current agricultural insurance provides agricultural business entities with a relatively low-level risk guarantee,unable to reach their normal income level,and that agricultural insurance products lack of financial function,resulting in weak correlation to agricultural credit.But when both agricultural guarantee and agricultural insurance are incorporated in the model for regression,the role of guarantee in relieving the financing constraints keeps its significance,and agricultural insurance can heighten this relieving effect.which indicates that insurance can play its risk sharing and financing credit enhancement on the basis of new agricultural business entities have obtained their guarantee.Fifth,on the basis of the above theoretical and empirical study,targeted analysis is made for three typical models of relieving supply-oriented financing constraints on new agricultural business entities,including ?government + bank?,?government + guarantee +bank? and ?government + insurance + bank? in current pilot projects.Three relief examples respectively representing family farms,farmers' cooperatives and agricultural industrialization enterprises are selected for this analysis.Comparative analysis is made on the financing constraints performance on the above three business entities;corresponding investigation is carried out into the alleviation effects on those cases.It is further proved,from the empirical perspective,that agricultural guarantee and agricultural insurance can,to varying degrees under the guidance of government,play a part in relieving supplyoriented financing constraints on new agricultural business entities.Meanwhile,the inadequate relief of financing constraints on some business entities in those cases indicates that the existing government-bank cooperation relief system still needs improvement and perfection.Finally,this paper proposes countermeasures and suggestions on how to relieve supply-oriented financing constraints on new agricultural business entities in combination with theoretical analysis,empirical findings and case study.First,improve the market system outside the government-bank cooperation frame.It is mainly suggested that the governance system of agricultural guarantee institutions should be improved by issuing Regulations on Agricultural Credit Guarantee,sinking the agricultural guarantee service network,establishing a credit investigation mechanism for agricultural guarantee and also optimizing the internal governance of agricultural guarantee to improve the risk sharing mechanism of financing compensation for new agricultural business entities.The correlation between agriculture insurance and settlement of financing constraints shall be enhanced by further expanding the financing function of agricultural insurance and innovating in agricultural insurance products of financing.Second,improve and perfect the system inside the government-bank cooperation system frame.It is suggested that resources from governments,banks,guarantors,insurers and entities should be integrated to carry out relief countermeasures,including establishing information fusion system to solve the problem of information asymmetry,establishing integrated entity system to solve the problem of low anti-risk capabilities among entities;establishing integrated punishment system to solve the problem of credit default;establishing integrated innovation system to promote the development of financial ideas.This paper has contributed more content to the research on existing rural financial problems,raised expert questions about financing constraints on three different types of new agricultural business entities and the relief mechanism,and made beneficial complement to deepen the research on financing constraints facing new agricultural business entities.Besides,in this paper,in-depth analysis of the financing constraints on new agricultural business entities and the alleviation effect of agricultural guarantee and agricultural insurance has been carried out by using first-hand data information collected through questionnaires,having directive significance in relieving financing constraints on new agricultural business entities.Last but not the least,based upon the theoretical research,empirical study and case study,analysis is made from two perspectives:government and market.It is suggested that the function of agricultural guarantee and agricultural insurance should be improved and perfected;meanwhile,policy resources and market resources should be interconnected by incorporating policy resources for supporting agriculture into such marketization tools as agricultural guarantee and insurance,to promote the in-depth integration among governments,banks,guarantors,insurers and entities during the financial activities,including establishing an integrated system covering credit information,business entities,punishment records,financial investment,product innovation,etc.,to provide a solution with strong operability to relieving supply-oriented financing constraints on new agricultural business entities in line with market rules. |
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