Social Trust, Quality Of Internal Control And Trade Credit Financing

Trade credit as an important alternative external financing way,plays an important role in alleviating the current financing difficulties,so it becomes a hot issue of concern in practice and in theory.At present,the researches on trade credit financing exist insufficient social problems.As a kind of social capital,social trust can stabilize the expectations of both parties,thus raising efficiency and reducing transaction costs,and internal control as an important corporate governance mechanism,by improving the reliability of corporate financial information,thus in the process of both parties of the contracting play an important role in confidence.Therefore,social trust and internal control both can affect the trade credit financing,but how to affect the trade credit financing,and the relationship between the two elements in this process is worth to further study.This paper studied enterprise trade credit financing from the social trust and the internal control,inside and outside two mechanisms,to a certain extent,expanded the research angle of view.At the same time,this paper inspects the trade credit financing scale and cost,make the study more comprehensive and in-depth.This paper reviewed the relevant research literatures,then,combined with the related theoretical basis,put forward about the trade credit financing hypothesis.Secondly,constructed the research models,and with Shanghai and Shenzhen two markets during 2009 from 2014 A-share listed companies as samples,using multivariate statistical regression method to empirically the social trust and the influence of internal control of enterprises' trade credit financing.Through the study found that the higher the quality of internal control,the trade credit financing is gained by the enterprises,the more and the lower the cost of financing.Relative to the region with low social trust,in the enterprise high social trust region,the more likely to obtain large-scale and low-cost trade credit financing.Further study found that in a low social trust region of the enterprise,its internal quality control for the influence of the trade credit financing scale and cost.After the robustness of the reliability of the test to verify the conclusion.Based on the research results,this paper put forward relevant countermeasures to improve the enterprises' trade credit financing conditions.