Study On The Impact Of Industrial Credit Demand And Financing Channels On Enterprise Performance

Enterprises need financingin production and operation,and financial institutions can provide financing support for enterprises.So,how is the relationship between credit demand,financing channels,and enterprise performance? In the existing research,more kinds of literature focus on the relationship between the two of them,and little research has made to grasp the relationship between the three.To study the impact of credit demand and financing channels on enterprise performance,which helps enrich and perfect to a certain extentthe theory of the relationship between financing and enterprise performance,and it is helpful to contribute to the development of enterprises,at the same time,it is also of great significance for clarifying the importance of finance for the real economic development,firmly improving the financial supply system,optimizing the financial supply structure,strengthening the integration and interaction between the financial industry,manufacturing,and service industries,consolidating the cornerstone of the real economy,helping the coordinated development of the modern industrial system and promoting stable economic growth.Based on the above background,this paper subdivides the financing channelinto formal financing and informal financing,in order to avoid the endogenous problem,measures the credit demand of Chinese enterprises with the index of the industrial credit demand of American enterprises,then by assuming that the difference of enterprise demand affects the relationship between the financing channelsand the performance of the enterprise,and taking China's private manufacturing industry as an example,we analyze the impact of credit demand and financing channels on enterprise performance through empirical research,whether the scale of the enterprise affects the relationship between credit demand,financing channel and enterprise performance.By using the World Bank China Enterprise Survey data,enterprise performance as the explained variable,and refer to the Rajan and Zingales(1998)model,using the intersection betweenthe amount of formal financing used by enterprise and industrial credit demand indicator,and the intersection between the amount of informal financing used by enterprise and industrial credit demand indicator as explanatory variables to verify the hypothesis that the difference between the enterprise's credit demand affects the relationship between formal financing,informal financing,and enterprise performance,and whether the assumption that formal finance,informal finance contribute to the growth of enterprise performance is valid.To verify the assumption that the larger the enterprise size,thehigher the growth rate of the performance of the credit-dependent enterprise,which promoted by formal financing or informal financing,is valid,the intersection between the amount of formal financing used by enterprise,industrial credit demand indicator,enterprise size,and the intersection between the amount of informal financing used by enterprise,industrial credit demand indicator,enterprise size as explanatory variables.To further more accurately verify whether the hypothesis is valid,in addition to the use of full sample regression,all samples were divided into two groups,according tofinancing from formal financial institutions and from informal financial institutions.Whether it is a full sample or a grouped sample,the correlation between the variables indicates that the amount of formal financing used by the enterprise,the amount of informal financing used by the enterprise are significantly positively correlated with the performance of the enterprise.The scale of enterprisesis significantly positively correlated with the amount of formal financing used by enterprises and the amount of informal financing used by enterprises,and the scale of enterprises is significantly positively correlated with the performance of enterprises.The empirical results show that: 1.The difference in credit demand of enterprises affects the marginal utility of formal financing and informal financing.When companies use the same amount of formal or informal financing,there is more growth in the performance of enterprises with strong credit demand than companies with weak credit demand.2.Formal finance and informal finance contribute to the improvement of the performance of credit-dependent enterprises.That is,whether financing comes from formal or informal financial institutions,compared to financing is sufficient,business performance declines when credit-dependent enterprises use insufficient financing.3.The scale of the enterprise affects the relationship between credit demand,financing channels,and enterprise performance.For enterprises with credit needs,the larger the size of the enterprise,the greater the use of formal financing or informal financing to improve the performance of enterprises.At the end of this paper,combined withthe conclusion of the studyand the actual situation of our country,the policy suggestions are put forward to improve the performance of enterprises.1.Since insufficient financing will lead to a decline in enterprise performance,and problems in financial markets will make it more difficult for enterprises to obtain financing,it is important to ensure the stable development of exchange rate market,capital market and interest rate market,so as to provide a stable financing market environment for enterprise development.2.In view of the disadvantage of small and medium-sized enterprises in terms of financing capacity,small and medium-sized enterprises due to insufficient financing will affect their enterprise performance,the government to help small and mediumsized enterprises to improve the performance of enterprises,can be achieved by helping small and mediumsized enterprises to improve their financing capacity.Therefore,the government should further improve the social credit system and improve the information transparency of small and medium-sized enterprises.3.In view of the relationship between the enterprise size affecting credit demand,financing channels and enterprise performance,the larger the scale of enterprises,the higher the growth rate of the performance of credit-dependent enterprises promoted by formal finance and informal finance,the government can alleviate the problem of enterprise performance damage,which caused by insufficient financingthat due to financing difficulties and expensive financing,by actively promoting policies to encourage enterprises to expand their operations.