Research On The Influence Of Private Enterprises’ Social Capital On Their Financing Efficiency

In recent years,environmental issues have been paid more and more attention by the whole society.The 19 th National Congress of the CPC pointed out that we should adhere to the harmonious coexistence of human and nature.At present,the environmental protection industry meets the requirements of the national "14th five year plan" and the vision and goal of 2035,with bright prospects.China’s environmental protection industry faces unprecedented development opportunities.However,despite the good development opportunities,financing is still the key to the development of enterprises.Generally speaking.The financing of enterprises depends on three traditional external ways,such as commercial bank loan,equity financing and bond financing.However,with the development and growth of enterprises,if only three traditional methods are used,the problem of capital shortage cannot be solved.Therefore,if the enterprises want to continue to develop healthily,they must solve the problems of difficulty in financing and high financing cost.In this context,scholars proposed to use social capital financing.The enterprise uses its relationship network and takes various ways to obtain the collection of various scarce resources which are conducive to the development of the enterprise,namely,social capital financing.The social capital of an enterprise is measured by the relationship network,trust and norms.The influence of social capital on financing behavior is reflected by financing efficiency.The ratio of financing income to financing cost is chosen as the measure index,and the research on financing risk is also increased.Through the analysis of the cost,benefit and risk of financing activities to study the financing efficiency.Practice has proved that the more complex the social relationship network and the higher the quality of the network,the greater the possibility of obtaining funds,information,technology and other resources in the social network.It not only has a variety of financing channels and larger financing scale,but also reduces the financing constraints of enterprises,and the enterprise industry can get more stable development and a relatively higher position in the relationship network.This paper summarizes the previous research,adopts the single case study form,analyzes the social capital status of Mongolian grass ecology,and expounds how the enterprise obtains funds with the help of social capital combined with relevant theories and basis.The paper focuses on the analysis of the role of enterprise relationship network in reducing cost,trust and regulation on improving financing income,and finally obtains how to influence financing efficiency.First,from the perspective of cost,the close strategic cooperation relationship between Mongolia grass ecology and banks can transmit a good signal in the relationship network,help enterprises to obtain the trust of banks,reduce information asymmetry,and the banks will reduce the loan conditions and increase the credit line.The cost of the funds of Mongolian grass ecology also decreased.Moreover,the higher the social trust,the better the credit environment of the network,the better the good reputation of Mongolian grass ecology can be further transmitted in the network.In the environment of high trust,Mongolian grass ecology can reduce negotiation cost and transaction cost and improve the efficiency of enterprise financing.Secondly,from the perspective of income,Mongolian grass ecology has obtained a large amount of government subsidies and tax benefits through the connection with the government.The government subsidy directly improves the income of enterprises,and the tax preferential relief of the enterprise tax burden,and finally gets the result of increasing the net profit.Moreover,the PPP projects of Mongolian grass ecology and government cooperation have laid a solid foundation for the government relationship network of Mongolian grass ecology for a long time,which makes Mongolian grass ecology not only convenient in the financing process,but also has considerable income.At the same time,social norms restrict the behavior of Mongolian grass ecology and other network members,and avoid irrational investment behavior of enterprises.It also increases the possibility of enterprises to use the funds to create more benefits,and improve the efficiency of capital use,namely,financing income.Finally,the paper summarizes the financing efficiency of Mongolian grass ecology from the three aspects of financing cost,income and risk.Through analysis,it is found that the financial risk of enterprises is high,but the financing cost is in a downward trend,the financing income is rising steadily and the financing efficiency is also in the stage of improvement.Therefore,social capital plays an important role in the financing activities of enterprises.