The Effect Of Financial Ecological Environment On The Trade Credit Reallocation

Credit resources is firstly distributed from formal financial institutions to enterprise with easy access to financing,then redistributed through supply chain likes the commercial credit from these enterprises to others,that is redistribution of credit resources.The phenomenon of the trade credit reallocation is universal in China,which on the one hand reflects the distortion of the initial allocation in the formal financial,on the other hand reflects the reliance on the informal financial.The drawbacks of the extension from the informal financial is seriously criticized.The expansion of the trade credit reallocation is closely related to the financing ecological environment in our country.So,this paper studies the impact of financial ecological environment on the reallocation of trade credit,which can helps us better understand the internal mechanism of the trade credit reallocation in China.So that we can optimize the allocation of financial resources.Based on our country's A-share manufacturing listed companies covering the period from 2005 to 2015 for research samples,this paper tests the impact of financial ecological environment on the reallocation of trade credit.Through the empirical study,I found that(1)financial ecological environment indexes which contain comprehensive index and four sub indexes are negative to credit reallocation.(2)The result is different in different property enterprises.The impact of the financial ecological environment on the trade credit reallocation is more significant in the state-owned enterprises.(3)The result is also different in different monetary policy periods.The impact of the financial ecological on the trade credit reallocation is more significant in the loose monetary policy period.After considering endogenous relationships and conducting a series of robustness tests,this negative correlation is still significant.It means that the enterprises are more convenient to obtain the financial support from the formal financial institutions in the better financial ecological environment,which can effectively reduce the corporate financing chain,improve the efficiency of capital allocation from the source,and ease the financing constraints of the enterprises.Based on the conclusions of this paper,I suggest that we should strengthen the governmental governance through optimizing the government function allocation,promote the economy development through optimizing industrial distribution,promote regional financial development through reforming the financial system,strengthen the regional legal system and credibility culture construction,so that we can optimize the financial ecological environment.Thus,it can restrain or reduce the dependence on the trade credit reallocation,then improve the efficiency of financial resource allocation.