An Empirical Study On The Impact Of Bank Connection On Listed Private Enterprise Performance

Along with the further deepening of the reform of state-owned enterprises, the proportion of private economy in the national economy is gradually increasing, as the increasing of the overall size, a number of outstanding private enterprises are expanding their own scale. On the one hand is a fast-growing of the private enterprises, on the other hand is the availability of credit resource of private enterprises is very limited, not only the small and micro enterprises, medium-sized private enterprises have also reflected different degrees of demand for external financing, bank loans dependence and the actual financing difficulties. In the present financial environment, the private enterprises are easily discriminated against bank,and are more difficult to obtain sufficient credit support from the formal financing channels. Because of the higher financing costs, they are often plagued by financial constraints. For this reason, in order to alleviate the problem of financing, more and more enterprises and banks began to associate, especially with the gradual liberalization of China’s financial market, this phenomenon is more common. So in recent years, bank connection has become a hot topic in the related fields, whether experts or scholars, are all research and pay attetion on the bank connection and financial constraints solution, the basic results is the bank connection can effectively relieve financial constraints. But the researchs on the impacts that bank connection for entetprises’ investment behaviors and their enterprise performance are few, and have not yet achieved the unity conclusion, which may have a great relationship with the environment. The social system and economic system in our country are unique, and the status of private enterprises in China’s are different from the past, and its development has more features. Therefore, research the impact on enterprise performance that bank connection have is more important.This paper selects 2012~2014 Shanghai and Shenzhen’s listed private enterprises as samples to build the regression model, research the impact of bank connection to enterprise performance. And from two angles that senior executive connection and sharehoiding connection to research the impact on enterprise performance, and finally research the impact on enterprise performance the bank connection in different marketization.The results showed that bank connection have a significant impact on enterprise performance.(1) Overall, the bank connection can improve business performance.(2) From the different types of bank connection, senior executive connection can better improve enterprise performance compare to sharehoiding connection.(3) Consider the differentia of China’s marketization, the areas that the marketization is lower, the good impact on enterprise performance that bank connection has is more significant.