The Study On Influence Of Information Sharing And Financing Constraints On Trade Credit

Trade credit is a very important way of external financing and subjected by theinformation sharing and financing constraints. The central bank enterprise creditsystem built in the year of2002has a positive impact in the society and improve thelevel of social credit. However, there is no relative empirical study now. Financingconstraints has been studied in many literature, but domestic literature on financingconstraints measure is still backward now.Based on this, This article combines theoretical analysis with empirical analysisto investigate the influencing factors of trade credit. Firstly, this article analyse theprinciple of the influence of information sharing and financing constraints on tradecredit. Comprehensively and systematically analysing the relationship between tradecredit and bank credit and development of the financing constraints measurementmethods. Then we select the data of465companies from1999to2010to do theempirical analysis. We estimates the KZ index with o-logit model and test theinfluence of information sharing and financing constraints with mean test. We findthat higher financing constraints companies use more trade credit, but higherinformation sharing doesn’t reduce the use of trade credit. The reasons are that tradecredit show a substitute relationship with bank credit only after the year of2007andbank credit won’t reduce with the improving of information sharing because of thebackward management system of commercial bank. Based on this, we do a multipleregression analysis. Finally, we do the robust test to examine the reliability of themodels. We consider the models are reliable through the robust test.