Research On The Relationship Between Credit And Social Financing

The development of social financing can help the real economy over the hump,reducing the financing cost and promoting the development of social finance therefore is the key of the supply--side reform.There are two reasons would cause the financing difficulties that China have faced.One is caused by information asymmetry which can improve the cost of transaction and limit the financing activities,such as the bank would not provide loans to the companies which is lack of credit guarantee and have a low degree of information.On the other hand,the absence of contract credit can make a large-scale defaults that the economic subjects to do in the process of financing for punishment mechanism failure makes its default opportunity cost is reduced greatly,so rational behavior person based on their own interests,the opportunism tendency of driven to make a default behavior.Based on game analysis in this paper,the contract credit,we analyze that,the contract credit can reduce transfer cost through the signal transmission mechanism and credit default punishment believable threat to effectively reduce the things on both sides of the transaction cost of financing.On the other hand by default punishment mechanism to increase default cost of financing the breaching party.Thus,we think the contract credit financing development has significant positive effect to the society.The content of contract credit we concerned in this thesis is more richer than credit,so we build a contract credit index system based on literature review first,and compare the index system with China's regional contract credit rank which is concluded by Zhang Weiying and Ke Rongzhu to guarantee the reliability of our contract credit index system,which is composed of two layers such as "Dominant discipline"and "invisible discipline".After that,within availability and accuracy of the data,this paper collects the provincial data from 2009 to 2014,using panel data method to test the relationship between contract credit and social financing.The empirical results indicate that:(1)Contract credit is one of the most important factors of influencing social financing,which means the contract credit can accelerate the development of social financing.(2)The influence degree of contract credit is not the same because of different financing method,as for China's current financing status,the indirect financing will be influenced greatly by contract credit.(3)In the transition countries,raising the level of credit doesn't necessarily mean that the financing structure will be transformed.Based on the above conclusions,this paper advances three pertinent policy suggestions are brought forward:(1)To perfect the property right system and to strengthen property protection.(2)To guide the people to establish the informal institution which is based on the contract society and make up the institution "vacuum".(3)To actively promote technology transformation,and the government should guide people use the information technology to support the financing activities reasonably,besides,financing entities should put the new technology into the contracting process.