The Study On The Firm Innovation Influenced By The Commercial Bank Loan

With the improvement of open degree, the competition between countries is growing. It is very important for the long-term development of the country on raising the national competitiveness. After the reform and opening up, China gradually joins into the tide of world economic development, especially after entering the WTO. China must constantly improve the international competitiveness facing more and more severe competition. Otherwise, China will be replaced in the tide of economic development. The developing model relies on cheap goods export is not fit for the development of China anymore. It needs to enhance the firm independent innovation ability, change economic growth way, and realize the upgrading of the industrial structure so as to guarantee the sustainable development of the economy.Firm Innovation cannot be lack of the capital investment. Because China is still a commercial bank leading financial structure and capital market is not perfect, it is very important to use the commercial bank loans in firm independent innovation. At the same time, commercial Banks also have inner and external demand to support enterprises for independent innovation. Internal demand mainly reflects on the increasing competition between banks which lead banks to search for new customers. Hence, banks and enterprises go to realize win-win cooperation. External demand mainly reflects on the policy regulation from government which hope the banks to support the firm independent innovation.In theory, commercial bank loans have advantages in processing information asymmetry, risk management and corporate governance in support of firm independent innovation. Because banks have a large number of customer information, so as to be good at providing financing service for independent innovation firm. Banks internal rating method also can help the bank to take good risk management to control risk of firm independent innovation. In addition, commercial bank also can provide enterprises with various financial consulting and management service, so as to improve the management level of independent innovation firm.In order to validate the theory advantage of commercial bank in supporting firm independent innovation, this paper selects the macro time series data and the medium level of provincial panel data to take empirical analysis. Whether the macroscopic level data, or the medium level data, both support positive relationship between the commercial bank loans and firm independent innovation. Especially in the eastern region, the relationship is very significant. At the same time, this paper also points out that there are many problems in support of independent innovation. After the introducing of the experience in United States and Japan, China commercial Banks should play a ligament role in support of firm independent innovation and enhance the degree of competition.This paper is divided into five chapters. The first chapter introduces the background of the main research, meaning and related literature. With China’s economic development, enterprise of independent innovation is becoming more and more important. The second chapter introduces the theory of bank in supporting firm independent innovation. From the function perspective, it agues that bank loans have advantages in dealing with asymmetric information, risk management and corporate governance in support of independent innovation. The third chapter use Chinese actual data to take empirical test and shows that bank loans has a positive influence on firm independent innovation based on macro data and provincial panel data. The fourth chapter introduces the experience of United States and Japan, and brings about some suggestions. The fifth chapter is the conclusion.Innovation of this paper:it tries to analyze the role of commercial bank loans in promoting firm independent innovation so as to get some effective suggestion. From domestic and abroad research, it is clearly to get that financial system has significant influence on firm independent innovation. Although, there are some studies in abroad, the domestic research is very few. In order to obtain the direct relationship between bank loans and firm independent innovation, we will analyze in the direct way.Inadequate if this paper:it is lack of an effective case analysis and micro data analysis based on firms, which will be the further direction of study. Because of my limited level of research, there are some deficiencies. I hope specialists and scholars can give the criticism and correct me. I will continue to learn and take hard work on it.