Effect Market Position Of Commercial Bank Loans And Credit

The economy is developing fast and the society is progressing unceasingly, whichset a higher requirement to our market system. Enterprise is an important member of themarket system,which is why its healthy and stable development is particularlyimportant. Whether the enterprises ’ capital structure is reasonable and the funds areused efficiently will have an impact on the social economic.The trade credit,as animportant medium for cash flow, becomes the link between the two trade sides.According to the flow direction of trade credit, the trade credit can be divided into tradecredit provision and trade credit gain. For providers, trade credit is an effective means ofcompetition, but it needs a certain amount of money as a support. While for therecipients, business credit is an important means of financing, and constitute the twoimportant sources of short-term financing of enterprise with bank loan. No matter thetrade credit provision, or the trade credit gain, all has close relation with the marketposition of companies in the industry. In view of this, the paper from the enterprisemarket position perspective, does the researches that how the commercial credit and thebank loan distribute in the same profession,and how the market position influences therelation between commercial credit and bank loan. It provides evidence for how can abusiness be able to ease financing constraints and use funds effectively combining theiractual mitigation,in order to promoting enterprise sustained and stable development.This paper draws on the experience of the researchers and scholars’ prior researchfrom domestic and foreign,and makes Comparative Advantage Theory, Credit RationingTheory, as well as Competing Hypotheses, Buyer’s Market Theory as the theoreticalfoundation. The paper regards the listed companies in A-share of China from2008to2012as the research subject,and analyses the nature and characteristics of each variablethrough descriptive statistics. Then, through the Pearson correlation analysis of differentvariables,we can have a preliminary understanding of the correlation between variables,and it can be seen from the Pearson correlation coefficient matrix that multi-collinearityis not an issue. Finally this article constructs three return models, respectively, studyingthe influence which is made by the market position to commercial credit and bank loan,as well as the change of relations between commercial credit and bank loan along withthe enterprise market position changing. And the steady examination has confirmed thesupposition result once more.This article in the commercial credit research includecommercial credit provision and commercial credit gain, which is one of the innovation.After careful empirical research, we find that enterprise market position has apositive impact on commercial credit gain,which means that higher market status, themore commercial credit gain. Market position also has a significant positive effect onbank borrowing, namely high market position of enterprise, easier access to bankloan.Business credit gain is substitutly related with the bank borrowing, and therelationship is more significant in the company having the higher marketposition.Commercial credit provision complementary related with the bank borrowingand the relationship is more significant when market position is lower.In the end, this paper offers a proposal based on the conclusions. Enhanceenterprise own strength and the quality. Cultivate small and medium sized financialinstitutions. Strengthen the support of government. Enhance effective use of the tradecredit. Increase the full and effective competition of the market.