Research On The Impact Of Interest Rate Liberalization On Corporate Financial Constraints

The "double-track financial system" environment during China's economic transition period is not conducive to the regulation of capital prices,and it also hinders the optimal allocation of funds.The price regulation makes the formal interest rate lower than the interest rate when the market clears,resulting in a shortage of funds.Quantitative regulation makes some high-quality enterprises unable to obtain financing in the formal financial market,and then turn to the informal financial market.The financial dual-track environment is the main reason for the difficulties in financing and high financing for small and medium enterprises and private enterprises in China.The "Decision on Comprehensively Deepening Several Major Issues in Reform" promulgated at the Third Plenary Session of the 18 th CPC Central Committee made it clear that in the process of comprehensively deepening reforms,the economic system reform has occupied a crucial position,and interest rate liberalization reform is the core of this financial reform.To a certain extent,it has corrected the distorted capital prices and helped the market adapt to the capital needs to allocate resources,thereby improving the efficiency of capital allocation.This significant reform has been going on in China for more than 20 years.It was not until 2015 that the cancellation of the deposit interest rate ceiling policy meant that the reform was basically completed.Since the market-oriented interest rate reform has achieved certain results,can it provide institutional guarantees for external financing? In this context of China's gradual reform,this paper attempts to explore whether the interest rate liberalization reform will help optimize the allocation of funds and ease corporate financing constraints.If so,what is the heterogeneity and the mechanism of action of the mitigation effect of this financing constraint?This paper constructs a database model of A-share listed companies from 2002 to 2016 by constructing interest rate liberalization index and financing constraint model,and systematically discusses whether interest rate liberalization reform can effectively improve corporate financing constraints and the heterogeneity of the impact on different companies..The results of the study show that the phenomenon of financing constraints that are actually present in Chinese enterprises has been improved and eased by the interest rate liberalization reform.Moreover,further research shows that this mitigation effect is heterogeneous: the financing constraints of small-scale enterprises have been alleviated to a greater degree than large enterprises;compared with state-owned enterprises,the financing constraints of non-state-owned enterprises have been improved.Obviously.On the basis of the foregoing,this paper further examines the path through which interest rate liberalization reform is adopted to resolve the financing constraints of enterprises and find out the mechanism of their role.As a result,it was found that in the steady progress of the interest rate market reform,the credit ration discrimination faced by SMEs and non-state-owned enterprises has been improved,and the path for relieving financing constraints through bank loans has been strengthened,and the path of financing constraints has been weakened through commercial credits.