The Discussion On Relational Financing Of Small Medium-sized And Innovative Companies

Small and medium-sized enterprises and innovative enterprises(here in after referred to as small medium-sized and innovative companies)are the main force of national economic development and upgrading of industrial structure.With the rapid development and innovation of China's capital market,small creative companies play a crucial role in promoting economic development,promoting market competition,encouraging technological innovation,increasing the employment rate,reducing the existing gap between country and town,and gradually become the main force to support the development of the national economy in recent years.However,due to the pressures in high growth of financing,the small medium-sized and innovative company financing pressures still restrict the further development of the company.For a long time,all the major commercial banks favored the state-owned enterprises and large and medium-sized enterprises.For those small innovative medium-sized companies,banks often reduce their risk by raising lending rates or lowering loan quotas to suppress small company loans,which causes one disaster after another undoubtedly.Considering the situation,there is a sharp contrast between the role of the small medium-sized and innovative companies in the transition of the national economy and the important position of the high growth of the emerging industries.Thus,the small innovative medium-sized company is one of the main part which need most funds in capital market.It can effectively alleviate the pressure of the small medium-sized and innovative company funds demand through the implementation of relational financing.Based on the relational financing in long-term relationship between banks and enterprises,the banks can get information that can't be gained from the open channels,which then reduces the problem of asymmetric information and increases the availability of loans to small medium-sized and innovative companies.In addition,although the research for relational financing is a new field,the connotation of "relation" is different.Chinese relational financing must exhibit certain particularity.Considering the particularity in China,the research on the relational financing is helpful to track the international academic frontier and deepen our research on the reality.Therefore,the paper is of great beneficial for us to deepen the cognition in relational financing.At the same time,there is a lot of deficiencies in the research of the relational financing of small medium-sized and innovative companies in the capital markets for scholars at home and abroad.For example,there have no analysis on inner mechanism of relational financing in small innovative medium-sized companies.They are generally analyzed from the scope,duration of the relationship as well as the view of the relationship between several banks.There is no deep analysis on internal machine of small and medium company relational financing.Therefore,this thesis also helps us to deepen the research on the theory of relational financing.The paper uses normative research combined with case analysis.In normative research,the paper reviews and summarizes the relevant literature both in China and abroad,and gives a theoretical overview of the concept,type,theoretical basis and the motivation and influencing factors of relational financing.In the part of case analysis,Hytera,an implementation of relational financing,was the research object.In this case,we evaluate the company's business development and corporate governance from the investigation of the strategic motivation,basis on implementation and the combination of financial data and chart analysis.Finally,the paper come out the conclusion through early analysis and give constructive suggestion on the implementation of relational financing.The main conclusion of this thesis is that the implementation of relational financing of small and medium companies in China's capital market can effectively alleviate the financing pressure of small and medium sized companies.In this thesis,we take the Hytera,a small and medium-sized company,as an example.The results show that:(1)the relational financing of Hytera can help to meet the investment needs and promote the transformation of enterprise market;(2)the implementation of relational financing can help Hytera achieve inter-temporal optimization of loan conditions;(3)the relational financing of Hytera contributes to alleviate the adverse impact,improve risk strain ability;(4)to carry out the relational financing conduces to Hytera to realize the maximization of enterprise value.