The Relational Financing Of Small And Medium-sized Enterprise Based On The Perspective Of Information Asymmetry

SME(Small and medium-sized enterprises) are playing an irreplaceable role in theincreasing development of economic. Such as creating jobs, increasing the income, improvingthe speed of economic growth, etc. However,in the process of development, SME generallyfaced with some insurmountable obstacles. Money is the source of enterprise survival anddevelopment, which also is driving force of business continuity. But in the current marketallocation function, the enterprise can only passive get capital resources, and unable to meet itsown needs, financing difficulties of SMEs is a fact of life, which has become a seriousconstraint to further development of the bottleneck. The fundamental reason is informationasymmetry between the banks and enterprises. Relationship lending is based on the productionand application of the trade parties to the transaction of soft information, reduce informationsearch and monitoring cost, then reduce the problem of asymmetric information to avoidadverse selection and moral hazard, which contributing to the establishment of thebank-enterprise relationship, and ultimately ease the SMEs financing difficulties. This articlefrom the perspective of asymmetric information analysis of relational financing advantage onthe financing of SMEs. This paper from four parties five chapters to research and analysis thisproblem specifically. It mainly from theThe first part of two chapters presented the paper to study the main issues. The firstchapter is introduction, mainly elaborated the background and study theme, the implications ofthe research(including theoretical significance and practical meaning), and points out theresearch methods and frame of paper, finally have a preliminary definition of SME andrelational financing. The second chapter is literature review. Based on the summary of relatedviewpoints, giving relational financing made a detailed analysis. It mainly from a theoreticalpoint of view of SMEs financing to analyze. First review the information asymmetry and related theory, then put the theory reference to the financial markets to explain the market rulesand conditions, and has laid the foundation of the relationship, open the door of the financingtheory. Relational financing theory is based on the production of soft information between bothsides, the core competitive ability lies in investors is private information, and gains informationproduction to create unique value. Relational financing ways are equity financing and debtfinancing, in different stages of the development of SMEs choose different financing mode. Bythe choose of financing channels, further demonstrated that relational financing productionprivate information without changing the essential characteristics of its private nature. Secondly,because of SMEs opaque information, lack of collateral assets, which make it difficult to obtainfinancing opportunities. Even if some enterprise through the certain way to get money, but thesefunds are not full. So then generate credit rationing. In order to avoid this, led directly torelational loans. To completely understand the relational financing, it is necessary to carry out adetailed study and discussion of credit rationing. The next from the perspective of theproduction of soft information adequately address some problems of relational financing. Atlast, it points out that the influence factors of relational financing,such as the bank size andorganization structure, bank of competition, argues the length of time relationship and so on.And then puts forward this paper focuses on: relational bank in soft information productionhave advantages, which proved in theory that relational financing have an important role in itsSMEs financing.The third chapter is the second part of paper, and analyze the information asymmetry ofSMEs financing problems. This chapter is from the current state and characteristics of thecorporate finance, pointing out the conditions of financing under asymmetricalinformation(bank risk,bank size and organization structure, its own scale and SMEs financingcontradictory),and then put forward to using the advantage of relational financing to solve thecontradiction. This advantage displays in: can reduce internal agent cost information and share of the time cost, the flexibility makes the contract negotiate relatively simple, and reputationrents makes bank rescue the financially troubled enterprises, constantly enhanced the financingconditions of enterprises.The article of the third part is the fourth chapter, is a chapter of the empirical analysis.Through the survey data (2006) and the relevant measure results demonstrates "softinformation" in solving SME financing difficulties, emphasize the relationship lending in thecrack the financing difficulty on the question of the advantage.Chapter5discuss the implementation of relationship lending and construction in China.From our financial institutions and system improvement, self-improvement of SMEs,government policy-oriented financing targeted analysis of three aspects to solve the financingdifficulties of SMEs in China countermeasures. To put forward the suggestion that at the sametime, also remind development relational financing should be paid attention to.