Bilateral Vendor-Customer Trust And Bank Loan

Bank credit financing has always been the most important financing method in China’s financial market.Bank loan decision-making is crucial to the development of enterprises,but only relying on legal and other formal systems can not ensure that enterprises get enough credit resources.In this case,the informal system of trust plays an increasingly indispensable role in the process of obtaining credit financing for enterprises.More and more scholars have found that trust can promote the establishment and deepening of inter-enterprise trade network,help suppliers and customers to form a close and stable relationship,which has a significant impact on the operation and development of enterprises,and then affect the willingness of banks to grant credit.Therefore,it is of great practical significance to study the influence of bilateral trust between supplier and customer on corporate bank credit financing.In view of this,in order to avoid the impact of the 2008 financial crisis and the COVID-19 epidemic in 2020,a-share listed companies from 2009 to 2019 are selected as research samples.Based on the existing literature system,this paper analyzes the concepts of credit and bilateral trust,and then analyzes the forming conditions of bilateral trust between supplier and customer and the influence of such trust relationship on supplier enterprises’ access to bank credit financing At the same time,regional institutional environment is further introduced to study the substitution effect of bilateral trust between suppliers and customers and regional institutional environment in the process of supplier enterprises obtaining credit financing.In addition,the effect of heterogeneous firm characteristics is also investigated.Finally,the mediating role of information asymmetry and transaction cost in the relationship between vendor-client bilateral trust and bank credit financing is discussed.Study found that:(1)the supplier and customer based on credibility can form the bilateral trust each other,and bilateral trust can deliver good signal to the bank and reduce the transaction costs between fact,thus reducing the expected default risk of the enterprise,promote the bank accurately judge the enterprise value,improve the bank’s credit will,to increase the ability of bank credit financing supplier businesses;(2)When the marketization level or legalization level of the supplier’s region is low,vendor-customer bilateral trust has a more effective effect on the improvement of enterprise bank credit financing,that is,vendor-customer bilateral trust and regional institutional environment have a substitution effect on supplier enterprises’ access to credit financing;(3)In the heterogeneity analysis,suppliers with government background and strong bargaining power more likely to obtain bank credit financing through building bilateral trust with their customers;(4)Bilateral vendor-customer trust improves supplier credit financing by alleviating information asymmetry and reducing transaction cost,that is,transaction cost and information asymmetry play a partial intermediary role.Compared with the existing literature,this paper starting from the dual perspectives of suppliers and customers,based on supplier enterprise and its customer enterprise each other’s reputation,first define the bilateral trust between suppliers and customers,and impact on bilateral trust between supplier and customer supplier enterprises to obtain bank credit financing mechanism to carry on the empirical test,At the micro level,a new interpretation of trust promoting enterprise development is put forward.This paper also makes heterogeneity analysis according to the differences between suppliers and their customers,which expands the applicability of the research.At the same time,this paper replaces the variable of bilateral trust between suppliers and customers from the perspective of bilateral relationship stability,and carries out a series of robustness tests such as Heckman test and PSM test to prove the reliability of the conclusions in this paper.Therefore,this paper can provide directional suggestions for the construction of bilateral trust between suppliers and their customers and the improvement of banks’ credit financing capacity,which is conducive to helping banks establish a more comprehensive,effective,scientific and reasonable credit risk evaluation system and improve the accuracy and rationality of their credit decisions.