| Since the reform and opening up,private enterprises have made outstanding contributions to China's economic development,but they are facing serious financing constraints.On the one hand,there is a dual economic system in China-the state-owned economy and the private economy.The state-owned banks which control most of the credit resources have preference for state-owned enterprises,but have credit discrimination against private enterprises.On the other hand,most of the private enterprises are small or medium enterprises which have the problems of the uncertainty of existence,poor integrity and low information transparency.In recent years,the state has issued a series of supportive policies to encourage the development of small and medium-sized enterprises.For example,the government gives small and micro enterprises tax incentives and financial support,and requires commercial banks to give credit support to them which meet the policy requirements.But the effect is not satisfactory.In order to survive and expand reproduction,private enterprises try to use informal mechanisms to finance,including relational financing.There is a "relationship culture" in China since ancient times,and social relations are important resource.Social relations are also important for the development of enterprises in both China and western developed countries.It is common for private enterprises to establish political connections.,that is to hire the person with political backgrounds to serve as senior executives.But in terms of relieving financing constraints,it is more direct for enterprises to establish bank connections,that is,hiring executives with banking background.There are three main ways for bank related executives to alleviate the financing constraints of private enterprises:(1)Bank related executives obtain credit resources for enterprises through social relations in the financial field;(2)Bank related executives provide credit guarantee for enterprises objectively,and reduce information asymmetry between banks and enterprises;(3)Bank related executives raise the level of corporate financing management with its own financial skills.This paper mainly studies whether the establishment of bank connections in private enterprises can ease financing constraints?This paper also compares the effect of bank connections and political connections to alleviate the financing constraints of private enterprises.In addition,this paper is not limited to the micro perspective,and takes the credit policy,industrial policy,regional finance and the competition intensity of the banking industry as moderator variables to study the impact of these four macro formal systems on bank connections to ease the financing constraints of private enterprises.In this paper,we take private enterprises listed in SMEs from 2009 to 2016 as a sample,and use the investment-cash flow model to confirm the results.The following conclusions are drawn:(1)Bank connections can effectively alleviate the financing constraints of private enterprises.(2)Executives' political connections can alleviate the financing constraints of private enterprises,but the effect is not as obvious as that of banks connections.(3)In the period of credit crunch,the bank connections can't effectively play a role in alleviating the financing constraints of private enterprises.Only when the credit is loose,the bank connections can play the mechanism.(4)Compared with the private enterprises which are supported by industrial policy,the effect of bank connections on financing constraints is more obvious when the private enterprises are not supported by industrial policy.(5)Compared with the region with higher financial development,the effect of bank connections established by private enterprises in the regions with lower financial development is more obvious.(6)When the competition intensity of banking industry is relatively low,the effect of bank connections on alleviating the financing constraints of private enterprises is more obvious. |
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