Research On The Impact Of Hidden Costs Of SME Financial Governance On The Efficiency Of Equity Financing

With over 30 years of exploration and development,capital market of China had established and risen from the early stage up to maturity.As capital market growing up,equity financing paved a new way of financing and made great contribution to providing the direct financing service in China.On September the 27 th,1987,China's first securities company-Shenzhen Special Economic Zone Securities Company was founded thereafter the diversified financing was achieved by initial public offering in the stock exchange of China and the direct financing of equity made its way to quickly develop.Since the year of 2017 especially after the 19 th CPC National Congress inaugurated,supervision department for finance and banking stably strengthened governance on capital market,improving supervision regulations,strictly preventing capital from flowing back to banking,and orderly lead the money to serve real economy,which threw quite a positive effect on direct financing for real economy.By the end of 2016,the quantity of national scaled medium-sized and small enterprises had reached 370,000 among which the medium-sized and small enterprises reached 54,000 and 316,000,taking a percentage of 14.6% and 85.45% respectively.Along with the perfection of market in the field,the direct financing for big companies improved a lot.However,medium-sized and small enterprises taking the majority nationwide still faced difficulties in hardship and expensive cost of financing.Investigation demonstrated that among those medium-sized and small enterprises needed for financing in 2016,38.8% of them declared unsatisfied in financing,decreasing by 0.3% comparing to the same period of last year,proved no improvement.In addition,grudging loans,reducing loans,drawing loans,and off-loans from banks happened from time to time,and the interest rates for those medium-sized and small enterprises were pervasively increased by 30% comparing to the normal level.The strong contradiction between the mature capital market and difficulties of high cost encountered by the majority of medium-sized and small enterprises,the thesis tends to take financial governance efficiency as angle of view and selects keys of financial governance--the financial governance costs--as cutting points to analyze the intangible costs,the most invisible factors in financial governance.Under certain extent of academic field and combining to the real case in practice,the paper takes quantitative analysis,documentary analysis,descriptive analysis,and case analysis to make deep studies on intangible costs in financial governance of medium-sized and small enterprises on the basis of The Theory of Enterprise Contract,Financial Right Flow Theory,The Principal-Agent Theory,The Theory of Enterprise Growth Cycle,and other relevant financing theories to explain the mechanism of relevancy between intangible costs in financial governance and equity financing efficiency of national medium-sized and small enterprises under current national conditions,political,economic,legal,cultural and industrial systems and competitive environment so as to promote equity financing efficiency of medium-sized and small enterprises and make contribution to solutions in practice.