| In the past twenty years,city commercial banks have set up many branches in different places for their own development.The mission of city commercial banks is to help the development of local economic and support the prosperity of SMEs.However,their over-expansion has exacerbated problems such as limited local attention and information asymmetry.As a result,the enterprises in the headquarter are faced with limited credit scale,high credit cost and unreasonable credit structure,and are subject to serious financing constraints.Besides,the banking industry has been in a state of excessive competition,and it is difficult to grasp the potential risks in other places,which results in diseconomies of scale.In addition,companies with branches have received too many "olive branches",resulting in the problem of diminishing marginal return.Therefore,it is not a beneficial choice for enterprises or city commercial banks to set up branches in other cities.Simultaneously,in the context of economic transformation,our state has put forward new requirements for the development of city commercial banks.In 2011,Vice Premier Wang Qishan criticized city commercial banks for "always wanting to expand across regions".And the CBRC chairman assistant Yan Qingmin said that unsound city commercial banks will be suspend approval when they apply for new outlets.During the "14th Five-Year Plan" period,our country has more emphasis on the significance of innovation in Chinese modernization.Moreover,as the main body of innovation activities,enterprises show a strong preference for banks when financing R&D.Because of objective demand from corporate financing and subjective demand from bank profitability,banks play a key role in corporate innovation financing.In the context of strictly controlling the operation in different places,how does the city commercial bank respond positively to the national call "shift from high-speed growth to highquality development",to better serve SMEs and promote enterprise innovation has become an attractive issue.Since among the 333 prefecture-level administrative plans in our country,only117 cities have city commercial bank headquarters,the policy in 2011 will have different impacts on companies in different cities,providing a good quasi-natural experiment.Therefore,the research ideas of this paper are as follows: First,relevant literature is systematically combed and integrated,which lays the foundation for the subsequent analysis.Then,combined with the existing theories,it puts forward research hypotheses of the impact on the relationship between the restriction of crossregional operation of city commercial banks and the innovation ability of local enterprises,and further introduces the cross-regional status of city commercial banks.Secondly,this paper constructs a DID model to analyze the impact of restricting the cross-regional city commercial banks on the number of local enterprise patent applications,taking the 2011 event as an external shock,based on data of banks,enterprise and city-level from 2005 to 2019,and the mechanism of action is also discussed.After a variety of robustness tests and extensive heterogeneity analysis,it’s found that policy implementation is beneficial to the innovation of enterprises in the regions where city commercial banks are headquartered,and the performance is more obvious in the enterprises listed on the manufacturing,SME board or GEM.In addition,the effect of this influence weakens in the western,eastern and central regions in turn.Besides through the study of the intermediary effect,it’s found that the policy can alleviate financing constraints,improve the loan availability in terms of scale and cost,and improve loan maturity structure of local enterprises ultimately affects enterprise innovation,but only partially.Finally,combined with relevant experience,this paper puts forward policy suggestions such as the government should insist on the management of banks’ cross-regional operations.And banks should form a development structure that adapts to the real economy.Our government also need to create a good external financing environment to encourage enterprises to innovate and other policy suggestions.So as to ultimately promote enterprise innovation. |
