Research On The Peer Effect Of Business Credit And Its Consequences In China

As an important source of short-term direct financing between enterprises,commercial credit has been widely recognized and used all over the world.But in China,the development of commercial credit has experienced twists and turns.Over the past 40 years of reform and opening up,China’s commercial credit system has not been fully restored and formed,and there are still serious defects and deficiencies.With the proposal of the new development pattern of double cycle,commercial credit has attracted the attention of academic and political circles.Improving the commercial credit system has become the focus of research and discussion.In this process,commercial credit will play a fundamental role,promote commercial transactions and financial operation between real enterprises,and promote domestic industrial cycle.Firstly,this paper combs and expounds the relevant theories of the existence and internal mechanism of business credit peer effect,including information asymmetry theory,social learning theory,dynamic competition theory and game theory,so as to lay a theoretical foundation for the later empirical analysis.Then,this paper collects the relevant financial and market data of Listed Companies in Shanghai and Shenzhen A-share market from 2007 to 2020.Through the empirical test of 2SLS method,the instrumental variables are constructed to alleviate the endogenous problem.The research confirms the existence of the peer effect of commercial credit of Listed Companies in China.At the same time,it is found that the internal mechanism of business credit peer effect is more manifested in that industry followers learn and imitate from leaders,so as to get rid of information disadvantage and reduce management cost,while the influence of predator-prey feedback mechanism is weak.Then,taking Tobin Q value and enterprise risk-taking level as proxy variables,this paper tests the economic consequences of business credit peer effect from the perspective of enterprise value and risk-taking.It is found that the learning imitation mechanism of peer effect has a positive impact on the commercial credit management of Listed Companies in China.Although the predator-prey feedback mechanism of peer effect can reduce the risk-taking level of Listed Companies in China,it will damage the enterprise value.Finally,according to the above conclusions,the corresponding policy suggestions are put forward,mainly including:paying attention to the spillover effect of peer effect,strengthening enterprise commercial credit management,activating horizontal financial mechanism and accelerating the construction of China’s social credit system.