Commercial Credit Environment, Corporate Social Capital And Financing Constraints

There exits considerable evidence that financial constraints are an impediment to investment and growth of firms.Although Chinese economy is fast developing,the financing constraints are still very seriousespecially for private enterprises.Financial constraints can arise from various kinds of sources.The literature identifies informational asymmetries and agency problems as the most important factors influencing the allocation process of financial resources to firms.The traditional research for financing constraints tend to focus on the formal institutional arrangement,however,their research ignored the individual or organizations' economic behavior,and the impact of their behaviors.Based on China's 2013-2015 private listed companies as research samples,construct the corporate social capital evaluation index system based on two dimensions of political and banking relationship network,this paper gives an empirical study in the effect of corporate social capital on financing constraints.Paper tries to answer two questions.Firstly,whether social capital could ease private company's financial constraint? Secondly,on different social trust environment,does social capital's effect have different performance? Through the empirical study on Chinese private listed companies,I find that corporate's bank connection could obviously ease financing constraint,while political connection do not.Furthermore,in high social trust area,company's bank connection does not ease financing constraint,while it works in low social trust place.And,to the aspect of political connection,I do not find its affection no matter in high social trust place or low social trust place.