Research On The Development Of Small And Medium-Sized Banks And The Financing Constraints Of Chinese Private Enterprises

Since the economic transformation of our country,the private economy has developed rapidly and has become an important part of the economic development of our country.The report of the 19 th National Congress of the Communist Party of China stated that: Chinese private enterprises consume nearly 40% of their resources,pay more than 50% of taxes and fees,create more than 60% of GDP,provide more than 70% of technological innovation,and supply more than 80% of job position,has become an important part and an important force supporting China’s economic development.Although the development of the private economy has made major breakthroughs,there are still some problems to be solved in the development process.Among them,the problem of financing difficulties and financing is the bottleneck restricting the continued development of the private economy.To achieve a new breakthrough in the private economy,it is necessary effectively solve the financing problems of private enterprises.For China’s small and medium-sized private enterprises,in addition to internal financing,the main channel of external financing comes from bank credit.Whether or not to obtain bank loans has become an important factor in enterprise development.Based on the perspectives of information asymmetry and financial structure,it is found that the “big banks” and small and medium-sized private enterprises have a high degree of information asymmetry.China’s “big banks” tend to lend to “big enterprises”;A large proportion of the entire banking industry,so the problem of financing difficulties for small and medium-sized private enterprises has not been effectively resolved.In response to the financing problems faced by small and medium-sized private enterprises,Lin Yifu proposed in 2001 that the establishment of a financial system based on small and medium-sized banks is the correct direction of China’s current financial reform,and in 2009 proposed the theory of optimal financial structure of new structural economy,the theory it is believed that the financial structure must match the specific stage of economic development in order to better serve the real economy.With the continuous advancement of China’s financial reforms,China’s banking industry structure has undergone tremendous changes compared with the past.The former banking system was monopolized by state-owned banks.Now it has developed into a multi-modern banking structure.Small and medium-sized banks have developed rapidly,and the level of competition in the banking industry has continuously increased.Then,whether the development of smalland medium-sized banks can ease the financing constraints of small and medium-sized private enterprises?This paper intends to study the impact of the development of small and medium-sized banks on the financing constraints of small and medium-sized private enterprises in the context of major changes in the banking structure.Firstly,based on the cash holding theory,this paper establishes a cash-cash flow sensitivity model based on the Almeida(2004)model,and uses the ordinary least squares method to estimate,and selects the private enterprises listed on the SME board and the GEM in2008-2016.The sample verifies whether there is significant positive cash-cash flow sensitivity in China’s listed small and medium-sized private enterprises.Secondly,based on the cash-cash flow sensitivity model,it joins the interim transfer of small and medium-sized bank development and cash flow to verify whether the development of small and medium-sized banks can reduce the cash-cash sensitivity of enterprises and alleviate the financing constraints of small and medium-sized private enterprises in China.Thirdly,based on the regional marketization level and political association grouping,this paper examines the development of small and medium-sized banks in the group of marketization level and whether there is political correlation.The difference in financing constraints between small and medium-sized private enterprises.The conclusions of the study show that: on the whole,China’s listed small and medium-sized private enterprises have positive cash-cash flow sensitivity,that is,they face financing constraints;And small and medium-sized banks can significantly reduce the cash-cash flow sensitivity of small and medium-sized private enterprises,that is,mitigating financing constraints;further analysis of the regression results found that the development of small and medium-sized banks has a more significant mitigation effect on the financing constraints of enterprises with low marketization or no political connection.This article is divided into five parts.Chapter one introduce the research background,concept definition and paper framework of the thesis.Chapter two is the literature review.It mainly includes reviewing the credit dilemma and causes of private enterprises,cash holding theory and financing constraint measurement,and summarizing the relationship between the development of small and medium-sized banks,marketization level,political connection and corporate financing constraints.Chapter three is the theoretical analysis and research hypothesis.Based on classical theory,a cash-cash flow sensitivity model is constructed.Chapter four is empiricalanalysis.Based on the introduction of sample selection and data source,the model is constructed,and the empirical regression results of the main regression,further analysis and robustness test are analyzed.Chapter five is the research conclusions and recommendations.Based on the results of theoretical and empirical analysis,policy recommendations are proposed.In summary,this paper not only verifies the relationship between the development of small and medium-sized banks and the financing constraints of private enterprises in China,but also based on the level of marketization and political connections,and discusses the differences between small and medium-sized banks in mitigating the financing constraints of small and medium-sized private enterprises.Make more specific recommendations.Based on the new research perspectives and ideas,this paper studies the financing constraints of small and medium-sized private enterprises from the perspective of banking structure,and provides theoretical and empirical support for the reform and development of China’s banking industry and the alleviation of financing constraints for small and medium-sized private enterprises.