Corporate Finance And Product Quality

China is facing the important period whether product quality can get sustainable development at present. Research what factors will restrict product quality is of great significance. As China’s special background with economic transition, financing constraints limit the improvement of product quality. The researches are always limited to export enterprises in he previous literature,and do not have to make a clear distinction between bank credit and commercial credit. Thus according to the deficiency of current research and based on the dual effects of bank credit and commercial credit, this dissertation innovatively discusses the influence of corporate financing for product quality by building a model and empirical research.As the proportion of bank credit and commercial credit in the corporate finance changes, their influence on product quality is changing constantly, and the magnitude and direction of the influence are different. According to the actual data of bank credit and commercial credit, the influence of bank credit and commercial credit on product quality is significant "U" shape.After the model analysis,this dissertation analyses the sample of China listed manufacturing companies in the stock markets of Shanghai and Shenzhen during 2012-2015 periods through statistical way and hypothesis tests, in order to find the relationship between bank credit and commercial credit and the different influence of financing ways on product quality. The empirical research results show that there is a substitute relationship between bank credit and commercial credit. And there exits an nonlinear relationship between bank credit and product quality or commercial credit and product quality. The influence of bank credit or commercial credit to the product quality shows significant "U" shape relationship.