Shadow Banking Development, Small And Medium Enterprises Financing Constraints And Corporate Investment

Since the global financial crisis,a new concept,the shadow banking system,leaped to the surface and became hot topic both in domestic and abroad financial sector.The US shadow banking system,which consists of investment banks and securities firms,transfers credit assets out of the balance sheet through asset-backed securities and collateralized debt obligations,and absorbs short-term funds and amplifies leverage through interbank repurchase agreements which has prompted the shadow banking system to expand.The shadow banking system has the following characteristics:large scale,high leverage,diverse forms,volatile and opaque.For these reasons,the financial sector believes the shadow banking system causes the financial crisis.China's capital market is under strict control and not completely open to the outside world,so there are big differences between China's shadow banks and shadow banks in western developed countries in specific environment and specific period.Most of them are still credit and credit-like business in China.On the perspective of supply,China's traditional commercial banking system is subject to regulatory constraints and their own risk control,high-risk entities in the economy are difficult to get adequate credit support,so the shadow banking system is to make up for this deficiency.On the perspective of demand,due to the poor credit situation and lack of sufficient collateral security in our country,a large number of small and medium-sized enterprises can not meet the requirements of bank credit.It is difficult for them to obtain formal commercial bank credit support,so they have to go to the shadow banks for help.As China's market economy is still in the initial stage of development,financial suppression has promoted the expansion of shadow banks,shadow banks became a bridge to the subprime lenders,which may play an important role.This paper argues that the shadow banking is an extension of the commercial banking system,which can obtain the financing from the commercial bank and assume the function of issuing loans.I use interbank net assets,entrusted loan,trust loan and undiscounted bankers' acceptances as a surrogate variable for the shadow bank.Based on the investment and financing behavior of small and medium-sized enterprises,this paper follows the main line of macro-finance development-micro-enterprise behavior,and adopts a large sample of empirical research methods.This paper systematically examines the mitigation mechanisms of SME financing constraints and the effects of shadow banking on SME investment behavior and investment efficiency,and conduct the following research:First of all,based on cash-cash flow model,this chapter mainly discusses the effect and mechanism of shadow banking on SME's financial constraint mitigation,corporate debt maturity and debt structure.This chapter also studies the role of property rights,bank credit and monetary policy on shadow banks.It is found that:the development of interbank net assets,entrusted loans,trust loans and undiscounted bankers' acceptances can represent the development of shadow banks,and shadow banks mitigate corporate financing constraints by reducing internal cash flow sensitivity;based on corporate risk and asset collateral channels,the shadow banks alleviate the financing constraint caused by the high risk enterprises,the shadow banks' mitigation effect on the financing constraint are stronger on the risker enterprises;the shadow banks alleviate the financing constraint caused by the high-asset mortgage enterprises,The shadow banks provide liquidity support to the enterprises,that is,the shadow banks provide short-term loans to the enterprises;property rights,the bank's credit and monetary policy have mitigation effect on the development of shadow banking and corporate finance constraints.Secondly,based on the shadow bank's support for SMEs,this chapter discusses the influence of shadow banks on SME's investment behavior.At the same time,I consider macro-credit constraint,micro-enterprise's own restraint and corporate growth mitigation effect on corporate investment.The results show that the development of shadow banking can promote the investment behavior of enterprises.Considering the level of corporate risk-taking and asset collateral,the development of shadow banking can promote the investment behavior of high-risk enterprises and high-asset-backed enterprises.When the monetary policy becomes tight,the shadow banking promote the investment behavior of enterprises stronger,shadow bank is a supplement to the traditional commercial banking system.Finally,based on the shadow banks' support for SME investment behavior I study the shadow banks' influence on over-investment and under-investment.At the same time,I consider the market-oriented environment and macro-credit mitigation effect.It is found that:the shadow banks alleviate the phenomenon of under-investment.If the enterprises have good investment opportunities,it will borrow money from the shadow bank to alleviate the problem of under-investment.In the area with high financial development level and social credibility,shadow banks are more effective to ease the under-investment of enterprises.Shadow Bank has a counter-cyclical nature and it is the subprime choice for the enterprises if they don't get the bank credit.This paper finds that shadow bank eases financial constraint and promotes corporate investment behavior in certain circumstances,but this does not necessarily mean to vigorously develop the shadow bank.China's shadow banking is born under market financial suppression,interest rate control and credit scale,it's the substitute choice for SMEs.The contributions of this paper are as follows:(1)In view of the financing difficulties of SMEs in emerging markets,the external financial environment factors play an important role,and the innovative financial instruments make up for the negative impact of the institutional environment on SMEs.This paper constructs the shadow banking development index,which enriches the empirical evidence of macro-financial development on micro-enterprise behavior.(2)Based on the Cash-Cash Flow Sensitivity model,this paper explores the impact of macro-finance development on the economic development of emerging market countries and extends the influence mechanism of macro-finance development on micro-enterprise financing constraint behavior.This paper explores the mechanism of shadow banks' financing constraints on corporate finance,and explores the mechanism of shadow banks' financing mechanism from a deeper level.(3)Based on the investment behavior and investment efficiency perspective,this paper studies the impact of shadow banks on the investment behavior and efficiency of micro-enterprises,and extends the research content of the relationship between investment and debt policies.It enriches the empirical evidence of financing constraints and corporate investment behavior and efficiency,which provides new empirical evidence for related research.