Can Listed On The National Equities Exchange And Quotations Alleviate The Financing Constraints Of SMEs?

The importance of small and medium-sized enterprises(SMEs)to the economic development and ease the employment pressure of a country is unassailable.The report of British company UHY shows,since 2010,China's start-up enterprises have achieved rapidly growth with 100%growth rate.By the end of 2015,small and medium enterprises have more than 20 million,providing more than 80%of urban employment,it exactly proves that SMEs are so important for promoting economic development and absorbing employment.However,in the context of the global recession and China's economy has entered a period of new normal,the survival of SMES is more difficult,financing is one of the most fundamental reasons for restricting the development of SMES.Academic has launched a wide range of research on how to alleviate the financing constraints of SMEs.Relations,reputation is important from the informal institution.At the formal institution,the perfect protection of property rights,the legal system and the social and economic system are the keys to alleviate the financing constraints of small and medium enterprises.Scholars generally believe that financial development can alleviate the financing constraints of SMES.The mitigation effect of liberalizing interest rate,financial intermediaries and small and medium-sized banks on SMEs financing constraints has been confirmed.But there are few studies on the impact of the National Equities Exchange and Quotations(NEEQ)on the financing of SMEs.The NEEQ is so important for promoting the development of small and medium-sized enterprises as a part of multi-level capital market.Based on this,this paper mainly studies the impact of the NEEQ on small and medium enterprises' financing constraints.In this paper,we choose the listed companies in 2012,2013 and 2014 as the research objects,By comparing the financing constraints of the two years before and after listing,this paper analyzes the mitigation effect of the NEEQ on the financing constraints of listed companies.First of all,we use the SA index of the listed companies to do the overall trend analysis and find that SA index showed an upward trend.Then we use the cash-cash flow sensitivity model to analyze the impact of the NEEQ on the financing constraints of SMEs.The study found that the NEEQ can significantly mitigate SMEs' financing constraints.After distinguishing the total sample enterprises,we found that the NEEQ has little effect on the financing constraints of large enterprises,and the effect on the financing constraints of small and medium-sized enterprises are relatively large.The NEEQ can ease the financing constraints of manufacturing enterprises and strategic emerging enterprises,but the strategic emerging enterprises benefit more.The policy significance of this paper is that the NEEQ as an integral part of our multi-level capital market is so important to the development of our small and medium-sized enterprises,especially strategic emerging,innovative and scientific enterprises.Therefore,China's financial market reform should adjust the banking structure to increase the indirect financing of SMEs,but also should continue to develop and improve the multi-level capital market,by attracting different risk appetite for investors to promote the external direct Financing channels.