Research On The Impact Of Supply Chain Finance On The Growth Of SMEs

In view of the domestic financial market imperfections, the problems of information asymmetry between banks and SMEs are pervasive, that makes SMEs as an important part of ecomony always face difficulties to obtain long-term loans from banks. And external financing is at high cost, which restricts the development of SMEs. As a new financing way, supply chain finance breaks the limitations of traditional bank financing model .Through the introduction of the core enterprises and third-party logistics companies, the transparency and credit of SMEs increased,helping to ease the financing constraints. Recently, China’s inter-regional supply chain finance development is not same, the level of development of the China’s eastern supply chain finance is relatively high, then financial restriction of eastern SMEs is eased more? The problem of financing restricts the development of SMEs,whether the supply chain finance of the eastern region makes a greater contribution to the growth of SMEs? Currently, the domestic economic growth is declining and the economic environment deteriorated, and there is possibility of outbreak of the financial crisis . It is necessary to study the financial effect of supply chain change has occurred at the time of the financial crisis? The solution to these problems can help financial institutions to carry out financial policy to support the development of SMEs,providing better ideas and the basis for tapping the SME market ,improving the external environment of SMEs and increasing economic vitality.Considering the enterprise characteristics、regional differences and financial crisis, this paper goes deep into studying the effects of supply chain finance on financing restriction and growth of SMEs. First, based on existing researches, this paper analyzes the functions of supply chain finance from three aspects: information asymmetry, credit loss and transaction cost, and puts forward the corresponding hypothesis. Secondly,based on 2007--2014 Corporate financial data and short-term loan data, this paper use cash - cash flow model and growth panel model to conduct empirical analysis. In addition,on the basis of the above research, this paper studies further. Introducing the financial crisis factors, this article demonstrates whether the supply chain financial effect is weakened under the background of the financial crisis through the combination of theoretical and empirical methods. Finally, the conclusions are as follows: First, the eastern and nationwide SMEs have significant financing constraints, financing constraints of Midwest SMEs are not obvious.Supply chain finance can reduce financing constraints, and the higher the level of development of the supply chain finance, the greater the effect of the supply chain finance. Second,supply chain finance can promote the growth of SMEs,but the role of Midwest supply chain finance in promoting the growth of SMEs is larger. Third,during the crisis, the effect of supply chain finance on financing restriction and growth of SMEs is enhanced,which is not accord with the financial ecology theory and common sense.