Study On The Impacts Of Financial Support To Cultural Firms’ Financing Capability

Cultural firms can help to absorb employment, develop industry, optimize the urban service functions, improve the comprehensive competitiveness, improve the socialist market economic system, stimulate economic growth, increase national revenue, promote industrial restructuring, social stability and development, they have become an indispensable part and a pillar strength in the national economy, but financing difficulty has become a major bottleneck of culture firms’development.Financial support plays a significant role in solving cultural firms’financing problem. Chinese Ministry of Finance and Ministry of Culture jointly issued financial support policy for cultural industry, provided a total·of 3.463 billion Yuan of special funds for the development of cultural industries in 2012; local governments were also actively in supporting local cultural enterprises, Jiangsu Province supplied 220 million Yuan financial support of cultural industries guidance funds in the form of capital subsidy supply, subsidized loans, performance incentives in 2012. "Central plus local" mode of industrial support has brought unprecedented opportunities for culture firms’ development.To evaluate the function of financial support in promoting corporate firms’ financing capability, based on the information asymmetry in the credit and capital markets, with signal transmission theory, this article investigates the relationship between financial support, entrepreneurs’ relationships and cultural firms’ financing capability, then, conducting empirical research by using 178 cultural firms’ data from Jiangsu province. The empirical evidence shows that financial support can improve external financing capability of cultural firms dramatically, and this affects can be strengthened in the role of entrepreneurs’ relationships; entrepreneurs’ relationships have significant influence on cultural firms’financing, but there are significant differences between entrepreneurs’ political relationships and the entrepreneurs’ business relationships in promoting cultural firms’ financing. Entrepreneurs’ business relationships can strengthen cultural firms direct financing opportunities and external financing capability; entrepreneurs’ political relationships increased opportunities to access to government financial support, and then the role of signal transduction enhanced corporate finance capability through the financial support. This analysis can help the government explore solutions to solve cultural firms’ financing difficulties and enhance the cultural firms’ financing capability, has positive theoretical and practical value in accelerating the development of cultural firms.