Research Of Supply Chain Finance’s Effect On Alleviating The Financing Constraints Of SMEs

Incomplete financial markets lead to asymmetric information exists betweenbanks and SMEs, it makes SMEs who makes outstanding contributions to oureconomy and society suffering credit rationing from the commercial bank in thelong-term. Thus lack of the external financing and the high financing costs become abottleneck restricting the development of SMEs. With the technology, logistics andsupply chain continuously development, as an innovative financial product, SupplyChain Finance enhancing the transparency of information for SMEs through theparticipation of core business and logistics companies, thus it helps to ease financingconstraints of SMEs. In recent years, the development of Supply Chain Financealleviating effect of SME financing constraints for different enterprises behaving in acharacteristic difference? Whether the developing legal system has any impacts on theeffect of supply chain finance? To solve these problems provide a basis and ideas forfinancial institution to explore the SME credit market.Based on the transaction cost theory, asymmetric information and financialecological theory, this paper explain the mechanism about how supply chain financealleviate SME financing constraints, and propose three hypotheses. Then, modelingthe investment-cash flow sensitivity to empirical test the effects of SCF for China’slisted SMEs. Using both GMM estimation methods and fixed effects estimation tomake the results more robust. Finally, this paper draw the following conclusions: First,China’s listed SMEs are suffering investment-cash flow sensitivity, the developmentof supply chain finance can effectively alleviate financing constraints; Second, thedifferent characteristics of SMEs, supply chain finance effects plays different function,specific performance, on a larger scale, lower ownership concentration of enterprises,supply chain finance mitigation effect produced significant, but small-scaleenterprises with high ownership concentration did not show a corresponding financingconstraint condition; Third, the continuous optimization of financial ecology, thedevelopment of supply chain finance can provide an institutional guarantee, which to some extent, promote supply chain financial situation to SME financing constraints,but the effect from the empirical results is small.