The Impact Of Corruption On The Obtaining Availability Of Corporate Finance

Corruption is harmful to the country and the people,destroying the normal operation of society and the economy,resulting in the government's poor allocation of social resources,causing great losses to the country and the people.Corruption leads to a variation in power,leading to distortions in the market.ASEAN countries in the past 10 years the economy has been basically growing,but there is a high degree of corruption during the period,causing the scholars of the widespread concern.Transparency International released the 2016 Global Corruption Perceptions Index,in the ASEAN countries,the integrity index of Malaysia,the Philippines,Thailand,Indonesia,Vietnam were 49(ranked 55),35(ranked 101),35(ranked 101),37(ranked 90),33(ranked 113),indicating that there are more serious corruption in the five ASEAN countries.With the "the Belt and Road",China and ASEAN countries will be more closely linked."The Belt and Road" is a win-win cooperation,mutually beneficial development path for Southeast Asia,South Asia and Africa and other economic countries along the country and China to provide a good opportunity for development and promote international cooperation,stimulate the domestic economic development potential.In order to strengthen China and ASEAN multilateral cooperation,China will increase investment in ASEAN,ASEAN countries will increase trade with China.Only in full understanding of ASEAN countries' political,economic,cultural and other aspects of the situation and economic operation mechanism,China can better in cooperation with ASEAN countries and the advantages of competition to guide Chinese enterprises "going out".However,the study of the impact of corruption on the economy,mostly at home and abroad to stay at the macro level,the micro level of research is relatively small.At the microeconomic level,what is the impact of corruption in ASEAN countries on corporate financing availability?In the current China to build a "Chinese characteristics of the open economic system theory framework",this research problem is undoubtedly a greater theoretical and practical significance.Based on the corporate survey data of the five ASEAN countries in Malaysia,the Philippines,Thailand,Indonesia and Viet Nam published by the World Bank from 2015 to 2016,the author uses the orderly Logistic regression(also called Ologit regression)model,combining with tool variable method analysis,to make the empirical study of the five ASEAN countries(Malaysia,the Philippines,Thailand,Indonesia,Vietnam)corruption on the impact of corporate financing availability.The study found that:(1)In general,corruption is an important factor leading to the deterioration of the overall financing of enterprise in the five ASEAN countries.(2)For different industries and enterprises in different countries in the sample,the effect of corruption on the availability of corporate finance tends to be consistent,which will reduce the availability of corporate finance,which shows that has a certain universality.(3)There are differences in the effect of corruption on corporate financing availability for firms with different organizational forms.Corruption is an important factor in the decline in the availability of financing for non-listed companies(including non-listed companies,wholly-owned enterprises,general partnerships,limited partnerships);and for listed companies,the impact of corruption on corporate financing availability is not significant,and after adding legal barriers and policy uncertainty factors,the impact of corruption on the financing of corporate changed from not significantly to positive significantly,indicating that the financing availability of listed companies is not only"immune" to corruption,but also certain corruption may help them to obtain financing.(4)As with corruption,the impact of legal barriers and policy uncertainties on the availability of corporate finance is important and reduces the financing availability of firms.(5)The interaction between legal barriers and corruption,in addition to listed companies,will largely weaken the negative impact of corruption on corporate financing availability.The reason may be that corruption can offset the negative effects of some legal barriers on financing availability,or that the existence of legal barriers increases the "correctness" of corrupt practices,making the impact of corruption on corporate financing availability no longer so bad.However,this interaction term is a "drop in the bucket" compared to the positive effect of corporate finance financing and the negative effects of corruption and legal barriers on corporate financing availability alone.Therefore,the combined effect of corruption and legal barriers on the financing of the firm's financing is always negative.(6)The Interaction between policy uncertainty and corruption on the financing availability of enterprises basically is not significant,indicating that the impact of corruption and policy uncertainty on the availability of corporate financing is to work alone.Although China's basic national conditions and ASEAN countries there are some differences,but other scholars'related research found that China may be the same as the ASEAN countries,there are similar corruption and financing.In order to improve the financing availability of enterprises,in addition to enterprises need to improve their own business conditions(such as increased sales,increase the proportion of the main business income,etc.),countries should also continue to improve the legal system,comprehensive control of corruption and other illegal acts,for enterprises to create a good financing environment.Therefore,through the empirical evidence obtained from the research of this thesis and the present situation of financial and legal development in China and the five ASEAN countries,we put forward the following policy suggestions:(1)To crack down on corruption,and constantly improve the economic legal system,improve the stability of economic policy;(2)To crack down on illegal enterprises,establish a sound audit system,strengthen the construction of inclusive financial system;(3)To encourage enterprises to market financing,bond financing,increase the financing channels;(4)Rational use of foreign capital,the introduction of competition mechanism of financial institutions,to promote the development of the financial industry.