Law Enforcement Efficiency, Investor Protection Level And Financing Efficiency Of SMEs

In recent years,more and more attention has been paid to the problems existing in the financing of small and medium-sized enterprises,such as government and financial organizations,and the problem of financing efficiency is the fundamental problem of the financing of small and medium-sized enterprises.There are many problems existing in small and medium-sized enterprises in China,such as the sparse supply of funds,the low level of investor protection,the limitation of the scale of endogenous financing,the low efficiency of law enforcement,the poor commercial credit,and so on.Therefore,small and medium-sized enterprises cannot make more suitable adjustments to their own financing mode,financing structure,financing cost,financing characteristics and so on according to their asset structure,profitability and risk coping ability.The existing literature research on financing efficiency has gradually become mature,especially in the definition of financing efficiency,the impact factors and its evaluation and other different aspects of scholars have done a lot of discussion and analysis work.However,there are a lot of research data in practical life.The factors that affect the financing efficiency of small and medium-sized enterprises in recent years are law enforcement efficiency and investor protection level.It is of great theoretical significance to summarize the previous scholars’ research and analyze their remaining research space.Therefore,the focus of this paper is to study and explore the efficiency of law enforcement.On the research of the relationship between investor protection level and financing efficiency of small and medium-sized enterprises,we hope to provide a reference for future research in this field.Enterprise financing efficiency has an indispensable impact on the survival and development of enterprises.Combing domestic and foreign relevant research literature and financing theory,through the analysis and summary of the related data and research results of SMEs financing efficiency,and redefine the connotation of financing efficiency.It is considered that the efficiency of financing should be considered in two aspects: the cost of financing and whether the financing can satisfy the investment.On this basis,based on the development background of the small and medium-sized enterprises,this paper makes an empirical analysis and discussion on the factors that can influence the financing effect of the small and medium-sized enterprises from a new perspective of law and finance.Taking more than 190 small and medium-sized enterprises listed on board and gem from 2011 to 2017 as samples,and this paper investigates the relationship among law enforcement efficiency,investor protection level and financing efficiency of SMEs,and explores the factors that restrict the financing efficiency of SMEs.The empirical results show that: after the control of other factors,with the improvement of law enforcement efficiency,the level of investor protection will be higher;and with the improvement of investor protection level,the financing efficiency of small and medium-sized enterprises will also increase.This paper also discusses the intermediary effect of investor protection level in the relationship between law enforcement efficiency and financing efficiency of small and medium-sized enterprises,which provides empirical evidence for the important role of law enforcement efficiency in the future financing market.Finally,based on the abovementioned research,this paper puts forward the following three dimensions: optimizing the internal management of the enterprise,cultivating the legal concept of investors,strengthening the legal consciousness of investors,perfecting the protection system of minority shareholders,and increasing the enforcement of the law.Guarantee the law enforcement quality to improve the financing efficiency of small and medium-sized enterprises has the pertinence,maneuverability countermeasure and suggestion.