Mechanism Of Group Credit From The Perspective Of Social Capital And Performance Of Small Loans

Small enterprises subject to face financing constraints of traditional financial markets because their own can not provide valid collateral assets.As mainly form of small loans,group lending uses of the advantages of social capital that can effectively reduce the information asymmetry between lenders and borrowers,solve adverse selection and moral issues arising from asymmetric information.The lender reduces the transaction costs and promotes the level of repayments.With the continuous improvement and development of small loans,credit organizations must improve the social performance goals and financial performance.But in the face of the sample selection bias,how to scientific evaluate the social effects of borrowers is an important problem to be solved.Capital for group lending,the thesis builds unique database of commercial bank credit and related household social-economic status.The thesis uses relationship type between group team members,the reputation of group team members and the business frequency with commercial banking to measure social capital of group team members.The paper make relevant assumptions and econometric models,creatively structure instrument variables of social capital-the intensity of social relations commercial bank to eliminate endogeneity,and empirically test that social capital of group members helps to improve the level of credit repayment and achieve financial performance goals.At the same time,the thesis uses treatment effect model to correct sample selection bias and test the social impacts of small loans.The conclusion is that small loans have significantly positive impact on the family income and the investment of group team members.Also the thesis uses Propensity Score Matching to give robust test.On the social context of our country,the conclusion of the thesis play an important role in design and implementation of small loan which uses social capital advantage to resolve the main difficulty in obtaining loans for micro-enterprises.Also,the conclusion of the thesis can make good advice for developing our micro-credit financial services,promoting the economic transformation and improving social welfare.