Research On The Relationship Between Commercial Credit Financing And Performance Of Middle And Small-Sized Companies

Nowadays,small and medium-sized enterprises(SMEs)SMEs have played an important role in promoting the social and economic development of all countries.For example,the economic growth of the United States and Japan after the 1870s;the growth of China's GDP and the easing of employment problems.However,SMEs have long been in the predicament of “funding difficulties and expensive financing”.If we want to maintain the role of SMEs in promoting social and economic development,the issue of financing constraints must be resolved in depth.In China,due to imperfect financial systems and strict capital market access conditions,SMEs have narrow access to funds,which is not conducive to the improvement of business performance.As a result,many SMEs have turned their attention to commercial credit financing.This financing method is common in the business activities of enterprises,accompanied by the transaction activities between enterprises and based on commercial credit,so it has the outstanding advantages of low cost and convenient access,which enables weaker enterprises to receive funds.Financial distress.However,when the company obtains financing,it must first meet the daily turnover of funds,and then use the remaining funds to increase production capacity to obtain production scale.Then,whether commercial credit can significantly promote the performance of SMEs is the key content of this paper.On the basis of carefully combing the relationship between commercial credit financing,financing constraints and business performance,this paper selects 474 SMEs listed on the SME board in 2008-2017 as the research object.Firstly,it studies the direct impact of commercial credit financing on the business performance of the overall sample company,and compares the impact of commercial credit financing and bank credit financing on corporate performance.Thirdly,it analyzes the mediating effect of financing constraint indicators in the above relationship.Combined with the results of theoretical analysis and empirical test,this paper draws the following conclusions:(1)Commercial credit financing as a kind of alternative financing has a significant positive correlation with the operating performance of SMEs,that is,the increase in the proportion of commercial credit financing can significantly improve the small and medium-sized enterprises.Business performance of the company.(2)The mitigation of financing constraints plays a positive mediating effect in the process of commercial credit financing to improve corporate performance.Specifically,after obtaining commercial credit financing,some of the enterprises directly contribute to the business performance of the enterprise,and the other part is to further improve the business performance of the enterprise by alleviating the financing constraints.(3)Compared with bank credit,commercial credit financing has a more obvious effect on the business performance of SMEs.