An Empirical Research Of The Impact Of Housing Price Fluctuation On The Financing Cost Of SMEs

Since the reform and opening up 40 years ago,the socialist market economy with Chinese characteristics has developed by leaps and bounds and made brilliant achievements.Due to their unique advantages,small and medium-sized enterprises(smes)have developed vigorously in the market economy and become an important part of the national economy.As an important carrier to promote mass entrepreneurship and innovation,small and mediumsized enterprises play an irreplaceable role in increasing employment,promoting economic growth,promoting scientific and technological innovation and maintaining social harmony and stability."Difficult and expensive financing" is an important bottleneck hindering the development and growth of small and medium-sized enterprises.Therefore,this paper discusses the changes in the equity financing costs of small and medium-sized enterprises under the background of housing price fluctuations,which is of certain reference significance for easing the financing constraints of small and medium-sized enterprises and reducing their financing costs.Based on the real estate market price data from 2013 to 2017 and the panel data of 413 small and medium-sized enterprises listed on gem,this paper studies the impact of housing price fluctuations on the financing costs of smes' equity from the perspectives of investors' asset selection channels and enterprise financing structure channels.First of all,from the Angle of investor assets,property prices will reduce the cost of equity financing of small and medium-sized enterprises from the Angle of enterprise financing structure,property prices rose through the collateral channels effect would increase the cost of equity financing of small and medium-sized enterprises,will affect the channel,the combination of two kinds of prices will eventually improve the rights and interests of small and medium-sized enterprises financing costs,house price fluctuations to the enterprise financing structure is greater than the influence of fluctuating prices assets for investors to choose;At the same time,the housing price fluctuation has a significant threshold effect on the equity financing cost.When the real estate price index as the threshold variable exceeds the corresponding threshold value,the impact of housing price rise on the equity financing cost increases to some extent.In order to investigate the influence of the increase of equity financing cost on the scale of equity financing of enterprises,this paper made an expansion analysis and found that the increase of equity financing cost did not stimulate enterprises to reduce the scale of equity financing,and the scale of equity financing showed an upward trend with the increase of housing price.Finally,the conclusion of this paper is still valid after the robustness test of endogeneity and hysteresis of real estate price.Previous literature has paid little attention to the impact of housing price fluctuations on equity financing costs,and the conclusions of this paper enrich the relevant research results.Combined with the empirical conclusion,this paper puts forward relevant policy Suggestions: first,formulate preferential policies to support smes to carry out equity financing and build a multi-level capital market.On the macro level,this proposal is conducive to deepening the financial supply-side structural reform.On the micro level,it is conducive to alleviating the financing difficulties of smes.Second,we should speed up the construction of social credit evaluation system.The establishment of social credit evaluation system is conducive to equity investors and financial institutions such as Banks to make accurate judgment on the operation of small and medium-sized enterprises,so as to improve the efficiency of the capital market and small and medium-sized enterprises.Third,the government should establish an early-warning system for housing price fluctuations,improve the forward-looking and scientific regulation and control on the premise of maintaining a relatively stable housing price,and promote the healthy development of the national economy.