Property Rights、Internal Control And Commercial Credit Financing

Commercial credit is a credit relationship which was produced in the purchase ofgoods or services on credit.The substance for the transactions is a short-termborrowing which was offered by supplier.At present, China is in a period of economicrestructuring which is different from foreign developed financial system.Our country’sfinancial system and capital market are imperfect,such as bank credit and issuingstocks or bonds financing have been more limited.Financing difficulties becomecommon dilemma faced by many companies.Therefore commercial credit as analternative means of external financing,not only has the characteristics of convenient,low cost, and can effectively alleviate the problem of financing constraints faced byenterprises.Both for the enterprise itself, and all the healthy and orderly developmentof the national economy played an important supporting role.However, due to the presence of incomplete in the contract, how to restrainenterprises the possibility of opportunistic behavior,reduce the information asymmetryof both parties,is a key issue to support commercial credit financing model of healthydevelopment.Internal control as an important corporate governance mechanism, caneffectively improve the quality of accounting information, reduce the degree ofinformation asymmetry, so as to have confidence in the process of enterprise businesswith suppliers.In addition, under the background of economic transition in China, thegovernment intervention in the economy and the differences between the state-ownedenterprises and private enterprises are also an important perspective.Due to thestate-owned enterprises in our country for more social burden, and the soft budgetconstraint problems,so banks prefer to provide more credit resources for state-ownedenterprises.Since in bank credit system, private enterprise suffered a "property rightsdiscrimination," then commercial credit financing as an alternative to bank credit,whether there is also a phenomenon of "property rights discrimination"?Or privateenterprises under the commercial credit financing existence financing advantage?Based on the above reasons, this article is in reference on the basis of domesticand foreign scholars research achievements, using Shanghai and Shenzhen A-sharelisted companies as samples.From the internal control, the property nature of these twoperspective,focusing on its impact on the listed company’s business credit financing.The empirical results show that:Relative to the low quality of internal controlof listed companies, the higher the quality of internal control of listed companies, theeasier access to commercial credit models in the transaction.Further studies showedthat strengthening the construction of the company’s internal control can helpenterprises gain more commercial credit financing.At the same time, our study alsofound that compared to private enterprises, the internal control of higher quality ofstate-owned enterprises are more likely to get commercial credit financing.Thissuggests that under the commercial credit financing, there is also the phenomenon ofproperty rights discrimination.Finally based on the results of this study, the paper putsforward the countermeasures of optimizing the commercial credit financing of listedcompanies.Innovation of this paper lies in:Relevant domestic enterprises internal control overaccess to commercial credit financing play a role in the study is less, consideringinternal control under the background of different property rights affect the commercialcredit financing research less.In addition, to enhance the quality of internal control oflisted companies, would improve the level of commercial credit financing has not yetbeen researched.In this paper, the research to strengthen the construction of internalcontrol of listed companies, has certain theoretical value and practical significance.