The Regional Difference Of Bank Credit Financing In Listed SMEs

As China’s reform and opening-up process speeds up, the small businesses, which played a role that cannot be overlooked in the process of China’s economic development, gradually become an important part of national economy from the original edge status, they can increase local economy. But because of the small scale, insufficient information, external finance of small businesses is limited seriously. For these enterprises, SME board market opened in2004provides a direct financing channel and richens the financing ways. But they are established the time to be short, equity refinancing is limited in a certain extent, so bank financing is also an important way for them. Besides, imbalance of regional economic development has also led to differences in bank credit allocation. In regions of lower financial levels, the government puts more efforts to interpose banks, this creates credit discrimination. With the further improvement of the financial system in our country, bank credit scale has a big breakthrough, but significant differences of financial development environment exist in different regions due to different resources endowment and the distribution of the financial development level. Through the analysis, this paper discusses the factors on bank credit scale and the term for Small and Medium Enterprise Board listed companies from different areas, and then analyzes the effects on credit scale and the term with financial development level in different properties.This paper concludes as follows:(1) On the whole, as the higher level of financial development, listed SMEs get fewer bank credit.(2) Financial development has a more significant negative correlation with loan term in the Midwest.(3) Bank loan of non-state-owned businesses is affected more significant by the level of financial development.(4) Non-state-owner companies’ term of bank loan is affected more significant by the level of financial development.(5) The financial development level’s enhancement improved the access to bank loans and long-term loans for the smaller public companies.(6) The financial development level’s enhancement has a positive impact on the lower growth of listed companies to obtain bank loans and long-term loans.(7) The financial development level’s enhancement has a positive impact on the lower profitability of listed companies to obtain bank loans and long-term loans.(8)Raising the level of financial development has a positive impact on listed companies with the lower mortgage assets to obtain bank credit and long-term loans.Innovation points and deficiencies of this paper are following:(1)Researches on small businesses mainly focused on IPO effect, internal control and capital structure, etc. they did not involve the macro financial environment factors of bank credit financing decision. This paper studies the regional differences of credit financing scale and the term of credit.(2) This article studies financial development environment’s impact on small businesses credit financing scale and term under the different nature of the equity. They haven’t been studied before.(3) Based on a panel data model, by region, respectively, establish empirical analysis on the influence factors of the bank credit financing of small businesses in China.(4) Deficiency of the paper selects only listed small businesses, but does not consider the unlisted small businesses, and not consider the legal environment and government intervention.