Research On The Influence Of Bank-enterprise Relationship On The Investment Level Of SMEs

SMEs can help promote economic growth,promote technological innovation,and increase employment opportunities.However,these companies have weaknesses in the core factors of debt financing such as establishment time,firm size,mortgageable assets and risks.In addition to the credit discrimination and inclination of banks,most of them suffer from financing difficulties,which is easy to cause underinvestment.Or inefficient investments such as over-investment.In order to alleviate the difficulty of financing,more and more enterprises are inclined to establish and maintain close bank-enterprise relations with banks,so as to reduce the information asymmetry between enterprises and banks,reduce the financing costs of enterprises,and improve the financing,and then through the impact on cash flow,further affects the level of investment of the company.In this context,this paper first summarizes relevant literatures on bank-enterprise relations and investment levels.Then,integrating the analysis of the measurement indicators of the relationship between banks and enterprises.Under the support of the relationship lending theory,the information asymmetry theory and the influence mechanism of the bank-enterprise relationship on the investment level of SMEs,the research hypothesis of this paper is put forward.Then it analyzes the status quo of China's SMEs development and the relationship between banks and enterprises.Finally,this paper selects the data of SME board manufacturing enterprises from 2013 to 2017.Through the empirical analysis get the conclusions of this study and make recommendations.The research results show that the relationship between banks and enterprises can improve the investment level of SMEs.In financially developed regions,the role of bank-enterprise relations in promoting the investment level of SMEs is more obvious.Compared with large enterprises,the relationship between banks and enterprises is more conducive to improving the investment level of small enterprises.Finally,we propose targeted recommendations from the government,banks,and enterprises.for example,the government strengthens policy guidance,the bank actively establishes a credit system for small and medium-sized enterprises,strengthens credit management for enterprises,and applies for personnel with background in banking,etc...