Research On Relationship Financing,Headquarters Economy And Private Enterprises' Financing Constraints

As the world's second largest economy,China's private economy contributes a lot.However,there are many obstacles to the development of private enterprises,insufficient funds to support the development of enterprises,but can not be obtained from the outside world,often treated differently by banks.This dilemma is due in large part to China's financial system to indirect bank financing,capital market and other direct financing channels are slow to develop,more crucially,the government has a strong control over credit resources.Leading to the existence of credit discrimination against private enterprises by financial institutions such as banks,which inhibits the supply of credit to private enterprises.The key reason for this problem lies in the asymmetry of information between banks and enterprises.Relational financing is to solve the information asymmetry,it provides an opportunity for banks and enterprises to obtain each other's information,so that each other can understand each other more clearly,and form a long-term,close cooperative relationship,is the main means for private enterprises to ease the financing constraints.However,relational financing also has a certain degree of malpractice,that is,the existence of relational financing of both banks and enterprises may increase the cost of risk.Relational financing may increase the cost of credit risk for financial institutions such as banks.On the one hand,after the bank and enterprises have experienced in-depth information exchange,and to provide many loans to enterprises,if the enterprise appears any operating conditions,the occurrence of a business crisis,enterprises are likely to be unable to guarantee full repayment to the bank,to the detriment of the interests of the bank.At this time,banks may be in order to enable enterprises to return to the formal,to ensure that the enterprise can be profitable later,to pay back the loan,choose to continue to provide funds for it,while the bank also bears greater investment risk.On the other hand,given the failure of business operations,banks may choose to stop lending,but give the outside world a very harsh impression,affecting other companies to borrow from banks,is not conducive to bank profits.Relational financing may increase the borrowing costs of private enterprises.After further cooperation between the two sides,compared with other banks,the relationship bank has mastered too many internal news,if the enterprise chooses other enterprises to refinance,may be time-consuming and expensive,if it continues to finance the relationship bank,although fast,may face a problem,that is,the relationship bank requires higher financing rent.In addition,after the bank lends,itwill take some measures to monitor the behavior of the enterprise,will intervene in the customer's investment policy,prevent it to make risky investment,hinder the company's profit and rapid development.Headquarters economic performance is a group of corporate headquarters in some areas of agglomeration,their purpose is to enjoy the local low-cost resources,so different departments in different spaces to divide,low-value economic activities into less developed areas,enjoy the low-cost labor there.On the contrary,high value-added economic activities are put into developed cities,where the resource elements can support them to achieve profitability,which not only maximizes the overall benefits of the enterprise,but also realizes the optimal allocation of regional resources.Under the background of Headquarters economic development,the development of financial industry has become the first condition of headquarter economy.On the one hand,headquarters master the overall funds of the enterprise,Headquarters agglomeration is bound to attract a large amount of funds to the region storage.On the other hand,the headquarters of all kinds of financial enterprises continue to concentrate on a certain geographical area,using regional advantages to continuously integrate regional financial resources,playing a financial agglomeration and radiation effect.Taking the non-financial listed private enterprises in China as a research sample in2010-2017,this paper puts the explanatory variables into the multivariate regression model one by one,discusses the influence of relational financing and Headquarters economy on the financing constraints of listed private enterprises respectively,and takes into account the high political status,The influence degree of the headquarters economy with strong economic strength on the financing constraints of private enterprises is different.Finally,the paper concludes that relational financing and headquarter economy can alleviate the financing constraints of private enterprises,and there is an alternative relationship between relational financing and Headquarters economy.The headquarters economy with high political status and strong economic strength has a stronger effect on the mitigation of financing constraints of private enterprises,and under the cities of high political status and strong economic power,relational financing and the substitution relationship of headquarter economy are stronger.The structural arrangement of this paper on relational financing,Headquarters economy and financing constraints of private enterprises is as follows:The first chapter is the introduction.Combining with the current background ofprivate enterprise financing,this paper re-discusses whether relational financing still plays a role,and adds a new factor,that is,the headquarters economy.The article takes the three as the main body,uses the descriptive statistical display variable correlation,the regression analysis obtains the influence degree,studies their relationship.At the same time,the text will be its own innovation points and shortcomings are also listed.The second chapter is a literature review.Based on consulting many literatures,this paper summarizes the internal relationship between relational financing and the financing constraints of private enterprises,as well as the influence of the headquarters economy as a macroscopic factor on the financing constraints of private enterprises.And summed up the previous research experience.The third chapter is the theoretical basis of relational financing,Headquarters economy and financing constraints of private enterprises.This paper mainly expounds the concept definition and characteristics,related relations and related theoretical basis of the three.The fourth chapter is theoretical analysis and research design.This paper puts forward the hypothesis around the theory,establishes the connection between the relationship financing and the financing constraint of the private enterprise,and incorporates the Headquarters Economic index.After referring to the relevant literature on the financing constraints of private enterprises by previous scholars,the research model which is in line with this paper is designed.The fifth chapter is the empirical test.Firstly,the definition of each variable is explained,the sample data is processed,the correlation degree of its variables is obtained by analysis,the relationship of variables is analyzed qualitatively,then multivariate regression is used to verify the hypothesis of this paper,and finally,the further test and robustness test are carried out.The sixth chapter is the research conclusion and policy suggestion.Through the regression to obtain empirical analysis conclusions,and in response to the issue of financing constraints of private enterprises,put forward constructive policy recommendations.