A Study On Financial Support System Of Small And Medium-sized Enterprises Internationalized Management

Since the beginning of reform and opening of China, China’s SME has accessed a high speed development stage and become an important supporting strength of the national economy. But as the adjustment of economic structure and the reform in China goes further, and as international competition becomes more intense after joining WTO, the economy sets a higher demand for the small and medium enterprise, which makes the development of SMEs facing many difficulties. The SMEs’relatively simple organization and structure, low risk-resistant ability and the simple way of management constraint the enlargement and deepening of the enterprise management. In addition, as the integration of China’s economy into the world market goes further, the small and medium enterprises begin to explore overseas markets, but the road to international management is not easy. There are the most direct two ways for the international management of EMSs:international trade and overseas investment and financing. However, since the foundation of enterprise, the shortage of funds has been important factors restricting the development of small and medium enterprises. Financial support for the international operation of enterprises needed by the EMSs highlights the financing difficulty for the EMSs.In recent years, a significant number of scholars undertook a study on the financing problem of SMEs from the perspective of theory of information asymmetry. Most scholars believe that asymmetric information is a source of financing problem for SMEs, and therefore the key to solve the financing problem is to increase information transparency between banks and enterprises. Under the guidance of this thought, foreign scholars used mainly financial statement lending technology, mortgage lending technology, relationship lending and credit scoring technology to SME loans. In order to alleviate debt financing dilemma of small and medium enterprises, Chinese scholars also put forward a number of policy recommendations for China’s national conditions, including building a long-term relationship between banks and enterprises, making hard efforts to develop small and medium financial institutions, and building security system in the name of government.Research from foreign scholars on alleviating the financing predicament has a certain instructional sense. But their policy proposals are incompatible with China’s actual conditions, because domestic scholars present proposals from the aspect of government. I believe that the key to solve the financing problem of SMEs is to solve the problem of information asymmetry between banks and enterprises, while at the same time, between Governments and financial institutions and enterprises.This article is going to research the financing problems encountered by SMEs in the course of international business from the perspective of information asymmetry. Most of the study by the precedents is from the perspective of the bank or the government; however this article wants to build a system supporting enterprises to get information from the enterprise point of view. This article is going to have a thorough analysis on information in a financing cost model and then give out proposal for the system, which is trying to avoid negative effects of information asymmetry on corporate financing as far as possible.This paper is divided into five parts. Chapter one is the introduction part. This part, on one side, introduces the research background, significance, method, content, basic structure, innovation and drawbacks. On the other side, it explains and defines the concept involved in the text. Chapter two will have a review of the related existing theory on information symmetry, and focus on describing the application of the information symmetry theory, including effect from information on capital market and internationalization business of enterprise. Chapter three analyses financing problem faced by SMEs in the process of internationalization business respectively from external environment, internal factors point of view, and builds a financing cost model to analyses effect on financing form information factors. Chapter four has a reference government experience of some other nations, and introduces the experience in parts of China. At last this chapter sums up the shortcoming of the supporting system in China. Chapter five builds a solid platform for the EMSs’ international management, and raises appropriate supervision mechanism from the perspective of information asymmetry, which relieves or reduces the problem of asymmetric information in the financing process.