The Study On The Relationship Between Capital Market And The Financing Constraints Of High-Tech SMEs

It's well known that Hi-tech SMEs (Small and Medium Sized Enterprises) have become the essence to technological innovation and increasing employment in China, as the solution of the financing constraints to the growth of High-tech SMEs. However, the characteristics of Hi-tech SMEs make it impossible for them to develop rapidly on its own resources accumulated. The difficulties of external financing have become the bottleneck of their fast-growth, and impeded the technology innovation severely. The sources of financing constraints are information asymmetry and transaction costs. And to solve this problem, there are two main ideas: first, develop small and medium-sized financial institutions to provide the financial supports to Hi-tech SMEs; Second, combine the capital market with the Hi-tech SMEs to give them access to the direct financing channels. The functions of capital market: price information transmission function, liquidity function, fund raising function, risk sharing function, and constraint & stimulation function, determine it as the best solutions for the information asymmetry and transaction costs. This thesis puts emphasis on the analysis and discussion about the capital markets' influence on the financial constraints of Hi-tech SMEs.Firstly, it analyzes the situation of capital market and financing of Hi-tech SMEs. Hi-tech SMEs are featured by the high-input, high-growth, high risk and high information asymmetry. The financing constraints faced by them are more severe and the financing needs are urgent. Accordingly, the basic functions of capital market can satisfy the financing needs of Hi-tech SMEs. Then it selects the companies of SME board as the samples, to conduct empirical research of financing constraints and the influencing factors. And the relationship between the R&D fund input and financing constraints is discussed specifically. Another empirical research is about the comparison of financing constraints after-listing and before-listing and the capital market's role in solving the financing constraints. And explain the difference of financing constraints in the analytical frameworks of capital market efficiencies, such as pricing efficiency, resources allocation efficiency and market operation efficiency. Finally, the thesis explores how to increase the market efficiency and alleviate the financing constraints of Hi-tech SMEs by capital market construction.