Research On Small And Medium Size Enterprises Financing Diffculty A Perspective On Contract Theory

Chinese Small and Medium size Enterprises (SMEs) played an important role in economy and contributed great to economy development and society stabilization. However, lacking appropriate financing channels hold up their operation and development. Other countries' experiences showed financing difficulty of SMEs was common phenomenon, but it was very special during the period of economy transition and market economy completion in our country because economy mechanism reformation was lagged and financing system was incomplete. Hence, it is useful to study and solve the financing difficulty of SMEs.By using modern contract theory, this dissertation restudied credit-financing difficulty of SMEs. It analyzed Chinese SMEs and their financing status in quo and established collateral model, credit rationing model, reputation model to discuss why it was difficult for Chinese SMEs financing. Also, it surveyed some SMEs in Xi'an and formed an econometric model by using the data we got, investigated all the factors which affected SMEs' financing difficulty and tested the models in the article. In the end it proposed some suggestions to this problem based on former analysis.