Research On Credit Discrimination Against Small And Medium-Sized Enterprises In China:Bounded Rationality Perspective

In recent years,the financing problems faced by small and medium-sized enterprises in China have attracted strong public attention.Banks’ discrimination against small and medium-sized enterprises or preference for large enterprises in credit business violates the equality requirements of socialism market economy system.In view of this situation,this thesis is arranged like this: raising a question,analyzing it and then solving the problem.The thesis takes the bounded rationality of banks as the research perspective,and uses a variety of empirical analysis methods to test the existence and influencing factors of credit discrimination,so as to put forward the solutions to the problem of credit discrimination.This thesis includes six chapters.Firstly,it organizes the review of current research on credit discrimination.The thesis focuses on various views on the causes of credit discrimination,and comments on the characteristics,consensus,differences and defects of current research.Secondly,the framework of bank credit decision analysis from the perspective of bounded rationality is established.Based on the cognitive structure of bounded rational behavior subjects,this thesis studies the impact of the psychological and behavioral characteristics of credit decision-makers at the theoretical level of behavioral economics.Thirdly,it makes a theoretical analysis of credit discrimination.This thesis regards information asymmetry and government intervention as factors that affect banks’ credit decision-making.With the aid of the value measurement standard based on dominance and the cognitive structure of bounded rationality,it is pointed out that credit discrimination is the result of bounded rationality credit decision-making.Fourthly,it makes an empirical test on the existence of credit discrimination against small and medium-sized enterprises.The empirical analysis process mainly includes two steps.The first one is the regression process.This thesis collects the relevant data of China’s manufacturing enterprises from 1999 to 2018,and aggregates them according to30 major industry categories,then obtains panel data.This thesis uses the multiple regression model to estimate the bank credit financing equations from four aspects: loan amount,interest rate,loan term and guarantee conditions.The second step is the decomposition process.According to the decomposition principle of Blinder-Oaxaca equation,the difference in credit between large enterprises and small and medium-sized enterprises is decomposed into two parts: the explicable difference and the inexplicable difference.Fifthly,this thesis tests the influence factors of credit discrimination with empirical study.As the dependent variable,the credit discrimination degree of banks against small and medium-sized enterprises is incorporated into a simultaneous equation model.In addition,bank sentiment index,herd behavior index of bank credit,bank net cash flow and bank social relations income are selected as explanatory variables.On the basis of stationary test,endogenous test,correlation analysis and identifiability judgment of simultaneous equation system,the thesis uses GMM to estimate the parameters of simultaneous equation model system.In order to test the robustness of the empirical analysis results,this thesis uses three-stage least squares estimation,and the method of supplementing and replacing the control variables of the simultaneous equation model.Sixly,some useful conclusions and suggestions are given in the thesis.The main conclusions are as follows.Initially,the bank’s credit discrimination against small and medium-sized enterprises exists in the real world.The regression results show that large enterprises can generally obtain more loans with longer term from banks with lower interest rates and looser guarantee conditions.The Blinder-Oaxaca decomposition results show that a considerable part of credit difference among enterprises of different sizes is not caused by completely rational credit rating factors such as the growth,liquidity,profitability,risk status and long-term financial status of borrowing enterprises.This inexplicable difference can be considered as evidence of credit discrimination.Additionally,the bounded rationality of banks plays an important role in credit discrimination.The empirical results show that the herding behavior of bank and the pursuit of social relationship income will aggravate the degree of loan amount discrimination.While the upsurge of bank sentiment reduces the degree of loan amount discrimination and interest rate discrimination,it aggravates the degree of loan term discrimination and guarantee condition discrimination.In order to improve the net cash inflow,banks will impose more serious loan term discrimination on small and medium-sized enterprises.The behavior of banks striving for social relations income and net cash inflow leads to reduced guarantee standard for large enterprises and increased guarantee requirements for small and medium-sized enterprises.In addition,the herd behavior of bank credit will aggravate the degree of loan guarantee discrimination faced by small and medium-sized enterprises.Based on the above research conclusions,some corresponding advices are put forword.Compared with the existing literature,the innovation of this thesis is mainly reflected in three aspects.Primarily,based on the cognitive structure of bounded rational individuals,the thesis analyzes the framework of bank credit decision in the train of thought,i.e.,from individual decision-making to organizational decision-making to bank credit decision-making.Additionally,taking the credit density as an explanatory variable,the thesis considers the matching relationship between borrower’s own economic status and his possession of credit resources.The relative position of different enterprises in the credit market is measured by the ratio of their credit density to China’s overall credit density,and the ratio of credit density of large enterprises to that of small and medium-sized enterprises.Eventually,the simultaneous equation model is used to empirically test the influence factors of credit discrimination.The emotion index and herding behavior index are used to quantify the bounded rationality factors.What’s more,the empirical evidence of the correlation and transformation among loan amount discrimination,interest rate discrimination,loan term discrimination and guarantee condition discrimination has been proven.