Research On The Influence Of Credit Capital And Information Cost On Farmers’ Financing Channel Preference

The report of the 20 th National Congress of the Communist Party of China pointed out that "we will accelerate the building of China into an agricultural country and steadily promote the revitalization of rural industries,talents,culture,ecology and organizations." This pointed the way for modernization of our country agriculture development.The development of rural industry cannot do without large-scale financial support.However,at present,Chinese farmers are generally faced with credit rationing due to information transaction cost caused by asymmetric information,which makes the farmers’ financing demand not fully satisfied,inhibits the farmers’ demand for regular lending,and makes the rural financial market hindered,rural finance can not play the role of "living water" in the revitalization of rural industry.The specific function of credit capital helps to reduce the information cost faced by farmers when borrowing,thus improving the availability and tendency of formal financing.Therefore,this paper will deeply analyze the ways and mechanisms of the influence of credit capital and information cost on farmers’ financing channels,which has important academic value and practical significance for improving farmers’ formal borrowing intention and promoting the development of rural financial markets.This paper firstly summarizes relevant research literature at home and abroad,guided by information asymmetry theory,information cost theory and reputation theory,and according to the logical main line of "credit capital-information cost-farmer’s financing channel preference",constructs a theoretical analysis framework of credit capital,information cost and farmer’s financing channel preference,analyze the current situation of supply and demand of rural credit system and financing channel and existing problems.Secondly,according to the survey data of farmers in Chunhua County and Xunyi County,Shaanxi Province,this paper makes a descriptive analysis of the household characteristics,production and operation status,and borrowing and financing problems of farmers in the sample area.Thirdly,with the help of factor analysis method,we construct and measure the comprehensive indicators of self-type credit capital and relational credit capital,and use Binary Logistic Regression analysis method and Sequential Test method to empirically analyze the influence path of credit capital on farmers’ financing channel preference,and test the mediating effect of information cost in this process.Finally,the Probit model,Sobel test and Bootstrap self-sampling test were used to test the robustness of the above results,and the research conclusions were drawn and targeted policy suggestions were put forward.Main conclusions:(1)Without information cost,both self-type credit capital and relational credit capital can significantly improve farmers’ propensity to formal lending.The higher the credit capital level of farmers,the more they prefer to borrow from formal financial institutions.(2)Farmers’ farmland planting area,degree of risk preference and satisfaction with financial services have significant positive effects on farmers’ formal financing preference behavior.(3)Abundant credit capital can increase the number of banking financial institutions for farmers to borrow,and reduce the information cost when farmers borrow;(4)Information cost has a partial mediating effect on the influence of credit capital pairs on farmers’ preference for financing channels,that is,credit capital can indirectly affect farmers’ preference for formal borrowing by influencing information cost,an intermediary variable.According to the research conclusion,the paper puts forward some policy suggestions:(1)give full play to the important role of credit capital in rural financial market;(2)Continue to strengthen the construction of rural credit system;(3)Vigorously develop the construction of rural credit civilization;(4)Actively build a rural credit information sharing platform;(5)Effectively expand the supply of rural financial services and innovate financial products.