Impact Study Of Company Social Capital On Financing Constraints In Medium-sized And Small Enterprises

Medium-sized and small enterprises(SMEs) occupy an increasingly important role in China’s economic development. However, behind its development, shortage of funds, external financing difficulties and other issues have not been alleviated effectively, even become more severe in the financial crisis and post-crisis period. The growth of small and medium-sized enterprises becomes difficult to break through the bottleneck. Therefore, based on the theory of financing, financing constraints as well as the mechanism of social capital, the impact study of the social capital on financing constraints of the small and medium-sized enterprises has theoretical and practical significance. The main contents and conclusions are as follows:Firstly, the paper using listed small and medium-sized companies as samples, analyze the main reason for its financial difficulties. The main conclusion is that the higher the gearing ratio of SMEs in China, the more dependence on the debt financing. As to the debt term, the percentage of short-term debt in total debt is higher than long-term debt’s and the percentage of account payable in short-term debt is higher than short-term loan. Indicating that commercial bank loans explain an important role and it’s difficult to get long-term financing for SMEs. The main reason is that SMEs have low level credit, low asst-backed, low profitability and high business risk. In addition, the main external reason is the lack of financing institutions for SMEs, the imperfect guarantee agency, information asymmetry and bank credit rationing problem.Secondly, the study constructs the index system of social capital. The paper uses the relationship between company and government, bank, suppliers, customers and managers to measure the social capital, then uses AHP to calculate the social capital level and analyze the social capital level by different sectors and regions.Finally, the study tests the impact of social capital on financing constraints by cash-cash flow sensitive model. And then use the different sample group to analyze the impact in different financing development level. Conclusions are as follows: the social capital of SMEs has relief impact on the financing constraints, and in the high level financing development region, the impact is more apparent.