Financial Ecological Environment?Internal Control Defects And Credit Financing Constraints

In July 25 th 2016,when introducing "opinions on deepening the reform of investment and financing system",the responsible person of the National Development and Reform Commission pointed out that financing is difficult and expensive,which is still the most common and prominent issue that the current enterprises have faced.The report about the burden survey of national enterprise is issued by China SME Development Promotion Center,which shows that 28% of enterprises think that the financing cost is heavier and more than 70% of enterprises call for the policies about improving reducing financing costs and expanding financing channels.This fully illustrates the enterprise financing is difficult and the current situation of financing expensive.Therefore,how to ease the difficulty of financing has become an urgent task.There are many factors influencing credit financing constraints.The main reasons for credit financing constraints are the problem of principal-agent and asymmetric information.The financial ecological environment from the macro perspective affects information asymmetry and principal-agent;while internal control defects affect information asymmetry and principal-agent from the micro perspective.In other words,the financial ecological environment can alleviate credit financing constraints by alleviating the problem of principal-agent and asymmetric information.Internal control defects can increase credit financing constraints by enhancing the problem of principal-agent and asymmetric information.Based on the above analysis,this paper takes the financial ecological environment as the external macroscopic factor and takes the internal control as the internal microcosmic factor.From these two angles,this paper studies on the influence of financial ecological environment and internal control defects on corporate financing constraints.Thus,this paper selected 4,775 samples from Shanghai and Shenzhen A-share listed companies and the time is from 2012 to 2015.At the same time,data smoothing method was adopted,and the data of 2013-2014 was used as the corresponding data for 2012-2015.uses the credit financing cost,new added financing ratio and credit financing structure to measure the credit financing situation,in order to explore the effect of external financial ecological environment on the enterprise credit financing constraints.On this basis,to further study the difference of alleviating effect of financial ecological environment under the different internal control defects.The results of multiple regression show that financial ecological environment has a significant impact on the new financing ratio and financing structure,which also affects the financing cost of enterprises in a certain extent.If the company has defects in internal control,it will enhance the alleviating effect of financial ecological environment,which means significantly reduce the cost of credit financing of enterprises,and increase the new financing ratio significantly.This paper study the influence of the financial ecological environment for the credit financing constraints,on the basis of further studying differences of the mitigating effect of financial ecological environment under different internal control defects,which enriches the research of credit financing constraints from the perspective of macro and micro,and it also provides a new idea to alleviate the credit financing constraints of listed companies.At the same time,this paper also separately studies on the impact of the four components of the financial ecological environment,which including the local government debt,economic base,financial development,institutions and integrity culture.