Banking Expectations And Corporate Financing Constraints

As is known to all,investment is an important part of the national economy,one of the three carriages driving the economic growth of a country,and also an important decision for enterprises to gain profits and development.However,for a long time,the problem of difficult and expensive financing has been hindering the survival and development of enterprises around the world.And it is also an important bottleneck restricting China's economic transformation and upgrading.The existence of financing constraints not only affects the healthy development of enterprises,but also prevents the effective allocation of funds and hinders economic growth.In view of these negative effects,a large number of researchers began to carry out in-depth research on this issue.Through theoretical and empirical studies,they studies the causes,relevant influencing factors,adverse results and measures of enterprise financing constraints,which provided a useful reference for enterprises to solve the problem of financing constraints.Bank credit is one of the most important financing channels.Based on the judgment of the future economic situation,banking expectations plays an important role in decisions on bank credit.Former studies have confirmed that banking expectations drives economic cycle significantly.The influences of banking expectations on the scale of credit funds and the standard of examination and approval are bound to affect the financing constraints through corporate credit financing.But unfortunately,existing studies both at home and abroad mostly focus on the macroeconomic effect of expectations,and studies about the influence ofbanking expectations on micro main body are relatively less.Therefore,this article explores how banking expectations impacts corporate financing constraints through theoretical and empirical analysis,so as to look for new breakthrough to ease the financing constraints and further explore banking expectations.In this paper,we firstly review and study the existing literature on banking expectations and financing constraints.Then,it theoretically analyzes how banking expectations influences financing constraints.And according to scale and ownership,it makes a more specific analysis and puts forward the corresponding hypothesis.Finally,we conduct the empirical test by using the data of Chinese a-share listed companies from the first quarter of 2008 to the fourth quarter of 2017,and analyze the results to draw the corresponding conclusions and suggestions.The final results are as follows: Firstly,at present,Chinese enterprises are still widely faced with the serious financing constraints.The degree of financing constraints faced by large enterprises is lower than that of small enterprises and the financing constraints of state-owned enterprises is more serious than that of non-state-owned enterprises.Secondly,banking expectations does have an impact on the degree of corporate financing constraints.Specifically speaking,optimistic(pessimistic)banking expectations would ease(increase)enterprise financing constraints.The internal mechanism is: the bank form expectations based on the judgment of future economic development and adjust the credit decisions on the basis of expectations.When banking expectations is optimistic,bankers tend to increase the money and reduce the credit approval standards,etc.,so as to ease credit financing constraints.Whereas intensify.Thirdly,the impact that banking expectations bring to corporate financing constraint exists asymmetry,namely the influence of pessimistic banking expectations is larger than that of optimistic expectations.Furthermore,the empirical results of groups according to ownership and scale show that the state-owned enterprises and large enterprises are greatly influenced by the banking expectations.This paper thinksit is related with "credit discrimination" which banks and other financial institutions have against such enterprises.Based on the above conclusions,this paper puts forward that in order to alleviate the corporate financing constraints,enterprises should take the initiative to disclose information related to the operation of enterprises,reducing the information asymmetry with investors,and strengthen internal management to alleviate the agency cost problem.Banks should change their discrimination against small and medium-sized enterprises and non-state-owned enterprises in credit allocation and allocate resources according to expectations.The government can make reasonable allocation of credit funds through duly and reasonable guidance to the banking expectations,so as to alleviate the financing constraints to some extent,which provides a new breakthrough for solving the financing problem that has been troubling enterprises for a long time.At the same time,the government should also pay attention to the management of expectations.The government should guide the formation of banking expectations,as a beneficial supplement to traditional macro-control,reasonably to improve the effectiveness of macro-control policies.Secondly,banking expectations as an indicator of the systemic risk of the banking industry,the government should incorporate it into the macro-prudential supervision system,strengthen risk prevention and control,and keep the economy running smoothly.Finally,our country should also strengthen the study on mining and using behavior data,and develop and improve the theory of banking expectations in combination with the trend of the development of behavioral finance.