Theoretical Mechanism And Empirical Analysis About The Impact On Insurance Intervene SME Financing

In China’s economic development, SMEs playing the increasingly prominentroles in the contribution of employment, exports and so on. However, due to theenterprises themselves, the financial environment, policy system and other aspectsreasons, SMEs have been facing severe financing problems, which severelyinhibited the development of SMEs, also inhibited the pace of China’s economicprogress. Therefore, how solve the financing difficulties of SMEs are urgentproblems that currently widely discussed by the financial and academiccommunities.In the background of building and improving SME credit guarantee system,guarantee institutions which mainly dispersed risk for SMEs due to various reasons,can not fully exert themselves or unwilling to play its role. In the condition, thisarticle proposes a method to enhance the SMEs credit, increasing the confidence offinancial institutions, security agencies disperse risk, improve SME credit financingsystem with insurance. In this paper, combining theoretical analysis withcomparative analysis, and also connecting qualitative analysis and quantitativeanalysis method to search the impact situation of insurance factor intervene SMEfinancing. Previous studies are almost theoretical level, almost no empirical analysis ofthe insurance factor in the impact situation on SME financing. This article will breakthis situation and make quantitative analysis, which is the biggest innovation point inthis paper.In the part of theoretical analysis, briefly analyze the current situation andreasons of SME financing problems. Then based on the insurance intervention SMEfinancing has great significance, learn the mature experiences from foreigndeveloped and developing countries as well as some domestic areas, introducing ourexisting and envisaged feasible empirical models.In the part of empirical analysis, select seven years data of2005-2011,31provinces, autonomous regions and municipalities in China for the study objects toconstruct fixed effects panel data model. Put forward corresponding policyrecommendations from the insurance agencies, small and medium enterprises andthe government according to the empirical results. Through this study, not only provide supplementary and deepening to solve thefinancing problems of SMEs in theory, but also provide the basis for application forthe insurance intervene SMEs financing to solve financing problems in practice.