| Private enterprises have provided o lot of job for the society and made great contributions to the national tax in the past 30 years. They are playing an important role in the Chinese economy. However, the problem of financing has become the bottleneck of the development of the private enterprises. Now many scholars have studied the Bank loans as the main way of the external financing. In recent years the “relationship†as an informal system of private enterprise to bank loans has been the attention of the scholars.This paper studied on the relationship between political association, bank relation and bank loan though theoretical analysis based on the 2009-2013 of Chinese private enterprises as research sample. This paper selected three explained variables based on the loan availability and debt structure. The results showed that when nonbank contact private enterprises as a sample of the regression model, the political association variable coefficient is negative for bank loan and short-term loan. However, the political association can’t help to access long-term debt. The regression results of the sample data from political association, the bank relation has a positive effect on the bank loan, short-term loan and long-term loan. At the same time, the regression coefficient of bank relation is greater than the regression coefficient of political association for the bank loan, indicating that the bank relation is better than the political for the access to bank loan. In addition, there is a kind of relationship is better than two kinds of relationship for the bank loan based on the all private enterprises samples. Then the bank relation can be used as a more informal institution to help private enterprises to ease financing constraints phenomenon. Finally, the paper further analyze the impact on bank lending of the political association and banking relation for private enterprises in different operating environments, the study found that the inferior operating environment of political association and regional banking relation is helpful for private enterprises to obtain bank loans.The informal mechanisms can ease the financing constraint issue caused by system defects, as this study indicated, and the bank relations has a better influence than political association, especially in the case of long-term loan. While establishing an informal mechanism, the process will result in a high cost of rent-seeking and effect the resource allocation efficiency of the whole society, and should not be blindly pursued. In inferior business environment areas, due to imperfect social system, financial environment and legal system, the informal system has a greater degree of influence on bank borrowings. Private enterprises in the choice of the informal system need combine their own situation, it is necessary to take the positive role into account, but also to consider the negative impact that may arise. In addition, the government should continue to promote financial reform, improve relevant legal system, to provide a favorable condition for private enterprises obtaining the necessary funds. |
