Corporate Geography Diversification And Bank Loan

In the process of social economic development and the development of enterprises, in order to expand the market, improve business performance, reduce business risk and obtain resource advantage to the enterprise business strategy choice, more and more began to select geographical diversification. Need a lot of money in the development of enterprises, and in the debt financing of Chinese enterprises more than80%of the funds are from commercial bank loans, in this process, the fund problem of enterprises has been resolved, but the risk of bank loans is increasing. The risk of bank loans determines whether banks can achieve profitability targets, so banks in the loan risk assessment has become increasingly cautious, in the choice of enterprise customers more "picky", in the loan conditions more "harsh", The enterprise receives more and more financing constraints in obtaining bank loans.This paper first reviews the enterprise financing and the geographical diversification of the relevant literature, and in the previous literature review on the basis of China’s actual economic situation and make research hypothesis, establish mathematical model test hypotheses, and then select the previous2009China two city Shenzhen A shares in listing Corporation (excluding2009) listed non financial insurance enterprises as the research sample, collect the sample enterprises’2009-2013geographical diversification data by hand, and based on the data collected in the manual, study the relationship between the enterprise geographical diversification and bank loan financing constraint by descriptive statistical analysis, correlation statistical and multivariate regression analysis to test the hypotheses.The research results show that the development of enterprise geographic diversification can help enterprises to reduce the level of financing constraints, the specific performance:helps reduce the loan interest rate, to help enterprises to obtain more long-term loans and more credit loans. At the same time, this paper also found that there are some differences in the impact of different geographical index data on the loan rate of bank loan financing constraints, but there is no difference in other indexes of financing constraints; affect the profitability indicators of enterprises for financing constraints is consistent, but the enterprise solvency and development capacity indicators have some differences for different financial constraints.Currently the research on the relationship between enterprise geographic diversification strategy and bank loan financing are very few, therefore, through the study of this paper, enrich and expand the factors that can ease bank loan financing constraints and the economic consequences of enterprise regional diversification, and at the same time enrich empirical research results of the relevant areas. The study results also can provide the theoretical basis for the choice of enterprise management strategy and the financing strategy, and it can be used for reference of bank loan business risk assessment for bank. The research of this paper makes the research conclusions more robust and reliable, considering the multi aspects of bank loan financing constraints and multi angle measurement of enterprise geographic diversification.