Guarantee Network And Relief Of Financing Constraints

Theoretically speaking,the mutual guarantee behavior belongs to the standard financial contract and does not have the adverse influence to the enterprise and the market.However,in the real situation,the external guarantee behavior of enterprises frequently occurs.At the same time,the existing research also believes that the guarantee behavior of enterprises always has a negative impact on enterprises and detracts from the value of enterprises.Since the mutual guarantee among enterprises has caused many negative effects on enterprises,what is the intrinsic motivation behind the active construction of credit guarantee network by Chinese enterprises in the real world?As we all know,listed companies in China generally face strong financing constraints.More scholars pointed out that the financing problem has become an important obstacle to the development of Chinese enterprises.Therefore,in the realistic situation,enterprises obtain credit resources by building informal relationships and alleviate financing constraints,which becomes an important channel for their sustainable development.Allen et al.(2005)pointed out that the informal system,including relationship and reputation mechanism,alleviates the financing constraint of China's private sector and is an important driving force for China's sustained and rapid economic growth.However,most studies have discussed the role of "government-enterprise relationship" in alleviating financing constraints of Chinese enterprises,and paid little attention to the importance of interenterprise relationship.Based on this,this paper discusses the relationship between social capital and financing constraint from the perspective of credit guarantee network established among listed companies.This paper consists of five chapters: the first chapter introduces the background,significance and thoughts of this paper.Chapter two and chapter three theoretically deduce the relationship between credit guarantee network and financing constraint.Chapter 4 empirically examines the relationship between credit guarantee network and corporate financing constraints on the basis of manually sorting out the data of credit guarantee network of a-share listed companies from 2003 to 2017.Chapter five summarizes the research conclusions of this paper.The research found that credit guarantee network alleviated the financing constraint of enterprises in the network,and this conclusion still holds after a series of robustness tests.It is further found that the alleviating effect of credit guarantee network on financing constraints is more significant for private enterprises or enterprises with lower financial deepening level in their localities.In addition,the more central the network is,the more significant the relief effect of credit guarantee network on enterprise financing constraints will be.In this paper,the theory and practice is expected to form several contributions: first,based on the construction of credit guarantee network guarantees each other between enterprises behavior,examining the importance of the ease of financing constraints,expands the existing literature analysis of main factors affecting the financing constraint research Angle of view,enrich the enterprise credit guarantee behavior economic consequences of the existing literature.Second,the empirical results of this paper show that the establishment of credit guarantee network is a feasible way for Chinese enterprises to alleviate financing constraints.Third,our conclusions suggest that in China,where institutions such as financial deepening are not yet robust,it is expedient for enterprises to build credit guarantee networks to alleviate financing constraints.Once the level of regional financial deepening is improved,the role of credit guarantee network in alleviating corporate financing constraints will be reduced correspondingly.Therefore,the long-term measures to solve the financing difficulties of Chinese enterprises and thus support the sustainable and stable development of enterprises still lie in building a sound financial system and environment.