An Empirical Study On Impact Of Bank Loans To The Performance Of Listed Companies On SME Board

Debt financing is one of a company's important financing decisions. Also it is a central issue in finance that how debt affects firm's value. Scholars of traditional finance theory, agential theory and information economy have done a lot of researches on debt's tax-free and financing leverage function, financial cost reduction and company's management improvement. These researches made us known a lot about how debt financing improves firm's value. However, these researches regarded debt as "the same kind". They neglected that debt of different maturity and from different creditors would influence firm's value in different ways. Compared with developed bond market of the Western countries, China's corporate bond market has just started, and distribution conditions are harsh, market size is very small. China's corporate bond market has just started, distribution conditions are harsh, and market size is very small. There will be a long way to go for SME to issue corporate bonds, and the bank loans will be most important means of financing for China's listed companies for a long time. However, under special institution background in China, both of commercial bank and many enterprises are controlled by government, and Scholars pay less attention to it. The problems have been eased since the reformation marker-oriented of commercial banks in 2003, but it has not been fundamentally resolved. Along with the deepening of reformation, whether bank play an important role in company governance is the focus of the study.Firstly, the background and significance of topics was described in Chapter II, including the method of analysis and logical framework. We introduce the structure of modern finance theory in Chapter II. The most outstanding contribution of modern capital structure theory was made by Modigliani and Miller, who published a paper in 1958, which is the company's most important cornerstone of financial theory. Their theory is called MM theory. After that, we introduces the "balance theory", "agency cost theory", "signaling theory", "Corporate control theory." we discusses the theory of debt management, and compared bank loans and bonds in two different perspectives. With regard to the monitoring role of bank loans, many scholars at home and abroad have done the relevant empirical studies, we listed some related valuable studies, and made a brief introduction.China's capital market is basically an immature, imperfect market, which has experienced 10 years of development history. Compared to the developed countries, our corporate bond market is too small. Chapter III focuses on the development of China's bond market. The major bonds are issued by state-owned enterprises and large companies, and it is very difficult for small and medium enterprises to issue corporate bonds. It is an innovation to issue collected bonds of SME. In April this year, the issuance of debt collection of small and medium enterprises was approved in Dalian, which is China's third branch of SME debt. Then we introduced China's banking system, pointing out that China's commercial banks has developed in the administrative system, which to some extent caused difficulties in financing of small and medium enterprises. Currently, banks are not able to meet the financing needs of SME, and there are some data about it. It provided realistic background for the subsequent empirical analysis.The empirical study in Chapter IV is the focus of the article, the ultimate goal of this paper is to try to discover the relationship between the bank loans and the company's performance. Through the empirical analysis, we shall examine the governance role of bank loans and thus puts forward proposals and policy responses. In this paper, we chose 273 companies on the Shenzhen small and medium plate which listed before the end of 2008 as a sample.It has 601 sets of data. Empirical results show that bank loans can increase the value of companies listed on small and medium plates, but it has evidences that bank governance is softly constraints, and the impact of loans on the company performance was not significant; The regression results of the term structure of bank loans show that the corporate of short-term borrowing and corporate performance and the negative correlation of long-term borrowing and company performance.Based on the result of the research, the author gave some advises at last part of the paper, Which includes promoting reformation of market-oriented interest rate, vigorously develop corporate bonds markets, continue to promote market-oriented reform of commercial banks, improve the corporate insolvency regime. We should improve the relationship between banks and enterprises, so as that the bank will play a governance role and the small and medium enterprises will develop better and faster.