The Marketization Process, Financing Structure And Financing Constraints Of The Small And Medium-sized Enterprises On The Market

The difficulty and the high cost in financing of small and medium-sized enterprises is the serious problem which always troubled the economists and entrepreneurs in China. To solve the above problems which obstruct the development of the small and medium-sized enterprises, our country has established and refined the equity market of SME and GEM, which increase the financing channels for the small and medium-sized enterprises. The large number of small and medium enterprises which solve 80 percent of our jobs have played a pivotal role in maintaining social stability. However, because of its small asset, small scale and lacking of guarantee capacity and collateral materials, the financial system is not perfect, the immature corporate governance structure and other reasons, small and medium-sized enterprises are facing serious financing constraints. Practical and theoretical studies have shown that financing constraints of small and medium-sized enterprises are not only affected by external environment, but also by their own governance mechanisms which are inadequate and the irrational financing structure.This paper focuses on the small and medium-sized enterprises listed in small and medium-sized enterprises board in China, and then studies the relation between the financing structure and financing constraints. First of all, this paper analysis the current situation of listed small and medium-sized enterprise financing structure and financing constraints, and finds that external financing is much more popular than internal financing for the above enterprises, debt financing accounts for small proportion of external financing, and small and medium-sized enterprises burden with heavy financing constraints. This paper introduces ZIFC index put forward by Yang An-hua(2012) to measure the degree of financing constraints of the enterprise, and selects the asset-liability ratio, concentration of ownership to measure the financing structure of enterprise, and then combines the marketization process index, constructs three multiple regression analysis model. This paper carries out the above multiple regression analysis through STATA12.0 software by method of the data of small businesses ranged from 2006 to 2011 in SME.The study finds that the relationship between the asset-liability ratio and the financing constraints shapes like an alphabet U which means that too high or too low of asset-liability ratio is not conducive to ease corporate financing constraints. From the point of the ownership structure view, there exists a significant positive correlation between the largest shareholder stake and its financing constraints, the listed small and medium-sized enterprises should reduce the largest shareholders’ ownership, change the family-management style, improve the corporate governance, and alleviate the financing constraints. The degree of marketization has an enhancing impact to the positive correlation between the degree of U-quadratic relationships and ownership concentration, and also that between financing constraints and concentration of ownership, which concludes that the process of marketization promotes optimization of enterprise’s financing structure, and thus eases the financing constraints.