Research On The Influence Of The Development Of Small And Medium-sized Banks On The Financing Constraints Of Private Enterprises

Over the past 70 years,private enterprises in China have experienced from small to large,from weak to strong,and now become the backbone of China's economic growth.The development of private enterprises not only creates good economic benefits,but also creates good social benefits.lthough the private economy has made such a great contribution,the growth process of private enterprises still faces many bottlenecks and constraints,among which the most prominent problem is financing constraints.Many studies have shown that the existence of financing constraints in private enterprises will reduce the value of the enterprise itself,and also have a lot of negative effects on the performance of the enterprise itself,which is not conducive to the development of enterprises for a long time.How to alleviate the financing difficulties of private enterprises in the next step is gradually put on the agenda.Therefore,it is of practical significance to study how to alleviate the financing constraints of private enterprises.Financing difficulty of private enterprises has always been the difficulty and pain point of the development of private economy in China,and private enterprises generally face the problem of financing constraints.In the past,when discussing the financing of private enterprises,the traditional view is that it is caused by the reasons of private enterprises themselves,such as the small scale of private enterprises themselves,the untrue financial disclosure information,the high credit risk factors.But more and more studies show that the external environment is also an important factor affecting the financing of private enterprises.According to the economic structure of our country,some scholars also put forward the theory of optimal financial structure,that is,large financial institutions are not suitable for financing for small and medium-sized enterprises,while private enterprises mostly rely on indirect financing,most of which are loans from banks.Therefore,it is very important to investigate the influence of the market structure of the banking industry on the financing constraints of private enterprises.Then,from the perspective of small and medium-sized banks,this paper studies the easing effect on the financing constraints of private enterprises,and based on the background of different institutional environment,that is,credit environment and political connection.In the empirical part,the financial data of Listed Private SMEs on the SME board and gem in2010-2018 and the relevant data of Small and medium banks in wind database are selected,and uses the cash cash flow sensitivity model to explore private small and medium-sized enterprises in China At the same time,this paper explores whether the establishment of political connections can increase the role of SMEs in alleviating private enterprises.According to the credit environment index,many provinces in China are divided into regions with good credit environment and regions with lack of credit environment.This paper studies the difference of the mitigation effect of the development of small and medium-sized banks on the financing constraints of private small and medium-sized enterprises in different credit environment.The results show that:(1)there are financing constraints in private SMEs in China;(2)the development of small and medium banks can significantly alleviate the financing constraints of private SMEs in China;(3)The study shows that the sample enterprises without politically related group are more constrained by financing than those with politically related group.The study considers that private enterprises seeking to establish political ties is an alternative way to alleviate financing constraints,It shows that the role of small and medium banks in easing the financing constraints of private small and medium-sized enterprises is more effective for those private small and medium-sized enterprises without political backgroun;.(4)In areas with good credit environment,the degree of financing constraints is lower than that in areas with poor credit environment,and in areas with poor credit environment,the more effective the development of small and medium-sized banks is in alleviating the financing constraints of small and medium-sized private enterprises.