Regional Corruption And Corporate Credit Availability

Bank loans are the main channel for corporate debt financing,and the diff iculty of financing and high financing costs hinder the balanced and healthy de velopment of Chinese enterprises.The problem of financing difficulties for SM Es has been reported frequently.In recent years,as the state has increased ma croeconomic regulation and control of listed companies,the promulgation of ne w regulations and the tightening of bank risk control have also increased the u ncertainty of the external environment of corporate credit financing.This has made the listed company's credit financing difficult.Factors affecting the availa bility of corporate finance include not only internal factors but also external en vironmental factors.Many researches have shown that the economic developme nt level,financial marketization level,legalization level,and education level of the region in which the enterprise is located have impact on the availability o f corporate credit financing availability.Corruption has become a common phen omenon in various countries and regions.Many relevant researches show that c orruption not only affects political life,but also has a significant impact on th e regional business environment at the macro level,and even indirectly affects the business decisions of enterprises at the micro level.The impact of corruptio n on economic activity has been extensively debated in the literature.One line of arg ument is that bribes can create direct incentives for bureaucrats to perform,or allow p rivate agents to overcome cumbersome regulations.In both cases,corruption could le ad to an improvement in the overall allocative efficiency of public resources.A seco nd line of argument is that bribes are mostly set according to the strategic preference s of bureaucrats,distorting private agents' decisions and decreasing allocative efficien cy.Anti-corruption has been an important tool for the central government to pu sh forward the comprehensively deepening reform since the 18th National Cong ress of the Party,and the whole society has paid more attention to the proble m of corruption than ever before.Anti-corruption is the intention of the party and the people,and regional corruption as an external environmental factor has an impact on corporate credit availability.Based on the above analysis,this research is based on the impact of region al corruption on credit availability of the listed non-financial companies of Sha nghai and Shenzhen stock markets from 2008 to 2017,and further analyzes th e influence of regional corruption on the credit availability of listed enterprises with different ownership and legalization levels.It is found that regional corruption has a negative correlation with the ava ilability of corporate credit financing;Compared with state-owned enterprises,regi onal corruption has more significant impact on the credit availability for non-state-o wned enterprises.That is to say,the state-owned enterprises will significantly reduc e the negative correlation between regional corruption and credit availability.In addi tion,this paper also studies the regulatory effect of the level of legalization on the regi onal corruption and credit availability.The study found that the higher the level of le galization,the less negative impact of regional corruption on the credit availability.This paper organically links the availability of corporate credit financing w ith regional corruption.On the one hand,it provides empirical experience for t he study of the impact of regional corruption on corporate credit financing,an d on the other hand it also provides an effective solution to the problem of co rporate credit financing difficulties.