Research On The Relationship Between Credit Financing And Enterprise Performance

At present,the poor financing channel is a common problem affecting the development of Listed Companies in China,which has plagued the development of China's real economy for a long time.The enterprise performance can be enhanced by improving the external system and broadening the internal financing channels.The credit financing is a typical example for the enterprises broadening its financing channels to obtain financing.In China whose financial market is imperfect,the credit financing has become an important financing channel not only to raise liquidity for daily activities,but also to supplement the shortage of long-term investments.Moreover,credit financing has the advantages of low threshold,easy availability,easy control of risks and no collateral.However,compared with developed countries,the function of credit financing in China has not been effectively used,and the development is unhealthy.There are many existing problems such as enterprise management's lack of commercial credit,the abuse of commercial credit,and the unsound development of the commercial paper market.Under China's new economic situation,credit financing,as an important alternative financing method,can effectively alleviate the constraints of financing resources and significantly improve the efficiency of the allocation of financing resources.This efficient allocation of resources is conducive to enhancing the profitability of listed companies and improving the performance level of listed companies.At this time,is the increasing attention and use of credit financing a blindly follow-up behavior,or does it have the necessity of existence?Whether and how credit financing can affect the performance of enterprises,which reflects the comprehensive strength of China's listed companies,is the starting point of this study.Considering the three problems above,based on the perspective of financing constraints and regional financial development level,this paper starts from the perspective of credit financing providers.By sorting out related literature,drawing on the experience of existing research results,and identifying the deficiencies that existed,two cities' non-ST A-share listed companies from 2012 to 2016 were selected as research samples for empirical research.First,we study the impact of credit financing on enterprise performance,and lay a foundation for analyzing the relationship between credit financing and enterprise performance in different cases in empirical and theoretical research.Secondly,we study the impact of credit financing on enterprise performance by mitigating the degree of internal financing constraints.Finally,we study the impact of credit financing on enterprise performance in different financial environments outside the company.The study finds that:(1)credit financing,as an alternative financing channel,can significantly improve the performance of the enterprise;(2)the degree of financing constraints is an important mediator factor affecting credit financing to enhance enterprise performance.Specifically,credit financing improves corporate performance by alleviating financing constraints.Mitigation of financing constraints plays a role in improving financial distress and increasing scale efficiency.(3)The level of regional financial development is another important external factor affecting the degree of credit financing to enhance enterprise performance.In areas with low levels of financial development,the financial environment is poor and the efficiency of resource allocation is low.The use of commercial credit for financing can change the financing dilemma of the enterprise and significantly improve enterprise performance.On the microcosmic level,the above conclusions can provide good inspiration and guidance for enterprises to make better use of the financing channels of credit financing.Enterprises can rationally arrange financing channels according to their financing constraints and the level of regional financial development,thus effectively improving enterprise performance.On the macro level,it can reduce the volatility of the financial market,promote the steady development of China's market economy,and make targeted recommendations to the government and related departments to improve China's financial market.