Comparison Of Financing Efficiency Of Small And Medium-sized Enterprises In China

Financing difficulty of SEMs in China has been a huge problem for a long time.The most vital key element in this problem is that the financing efficiency is dramatically low and financing channels are very uneasy to access for the SMEs in China.With the awareness on the issue being enhanced by government,a huge number of different financing policies have been published to support development of SMEs,among which the most outstanding equity financing method is the setup of NEEQ.It provides a direct financing channel for SMEs,making financing ways for SMEs been expanded.O n the issue of indirection channels,credit with stocks and impawn based on patent credit and other innovations on credit have also been put forward.Were reviewed in this paper are the financing theory and the influence factors on the basis of enterprise financing,according to the vital enterprise financing methods,this paper will use both analysis of theory and evaluation model to verify the correctness of theory,linear regression method is adopted to establish the performance of evaluation model of financing for its different ways of financing.Through comparing the different financing efficiency of different ways,we can find causes and relevant countermeasures.By using financial data source of listed companies on NEEQ before Mar.31,2015 and filtering out the delisted or earnings volatility companies,this paper used evaluation model to assess their efficiency and made a comparison,and our conclusions are:(1)The positive effect of internal financing is the most significant,the more internal accumulation of surplus reserve is,the better financing efficiency is.(2)Equity financing make some negative impact on SMEs.(3)Under certain percentage,increase of indirect financing has a positive effect on financing efficiency,but it tend become negative effect when asset-liability is too high.The conclusion of empirical study is in accordance with the conclusion of FAHP.On the above-mentioned empirical conclusions,this paper analyzes the possible reasons for the difference :(1)Samples are small scale of enterprises,and the large differences between enterprises make the sample data not strong.(2)Debt financing on a reasonable level benefits the enterprises b y using leverage effect to promote its own development,but high asset-liability ratio weaken their credit and ability to refinance.(3)PE financing is not effectively used.(4)Equity financing is for long-term goals,it may not stimulate corporate profits in short-term.(5)Listing on the NEEQ has hidden costs,which makes RO E decline,and NEEQ's system needs to be improved.Some policy suggestions are put forward in the paper to provide a reference.