Research On The Influence Of Bank Competition On Enterprise "Short-term Loan And Long-term Investment"

Banks will increase their snatch of customers for the consideration of operating pressure,thus increasing the opportunities and loan quantity of micro enterprises to obtain bank loans.Therefore,changes in the level of competition in the banking industry are related to the behaviors of micro enterprises to a certain extent.When there is a long-term investment gap,enterprises will make up for it by short-term financing from banks.At this time,there will be a term mismatch of investment and financing,which is specifically manifested by enterprises’ short-term lending and long-term investment behavior.Therefore,This paper explores the direction and mechanism of the influence of banking industry competition on enterprises’ short-term lending and long-term investment,and conducts an in-depth analysis on the ways and degrees of the influence of banking industry competition on enterprises’ financing models from the two approaches of easing financing constraints and extending debt maturities.Based on this,this study takes China’s A-share non-financial listed companies as research samples,proposes research hypotheses based on maturity matching theory and financing constraint theory,and empirically analyzes the influence of banking competition on enterprises’short loan and long investment.The paper further studies the specific influence channels,internal and external adjustment factors,heterogeneity characteristics and economic consequences of banking competition.The results show that:first,the improvement of the competition level of the banking industry in the region where the enterprises are located can effectively alleviate the enterprises’ short loan and long investment;Second,the study of mechanism shows that financing constraint mechanism and debt maturity mechanism are the two channels through which banking competition exerts influence on enterprises’ short loan and long term investment.That is,banking competition reduces enterprises’ short loan and long term investment by alleviating enterprises’ financing constraint and extending debt maturity structure.Third,the close relationship between banks and enterprises can inhibit the easing effect of banking competition on enterprises’ short loan and long term investment,and the adjustment mechanism of economic policy uncertainty shows that it can promote the easing effect of banking competition on enterprises’ short loan and long term investment.Fourth,through heterogeneity analysis,we can see that banking competition has a more significant impact on non-state-owned enterprises,high-growth,manufacturing enterprises and areas with high fintech level.Fifth,banking competition mitigated the negative consequences of short lending and long investment on performance.In this study,alternative variable method,propensity score matching method,replacement sample method,and one-phase lag method were successively used for robustness test to ensure the relative robustness of research results.The main contribution of this paper is as follows:first,it broadens the research boundary of banking competition and enterprise irrational investment and financing.In this paper,based on the micro perspective,from the two mechanisms of financing constraints and debt maturity,the influence path of banking competition on enterprise short loan and long investment is explored,which provides new empirical evidence for us to better understand the relationship between financial development and enterprise financing mode.Second,it provides ideas for future banking reform and development and enterprise development.Starting from the micro level,the analysis of the impact of the changes in the market structure of the banking industry on the enterprises will be of certain contribution to the improvement of the structure of the Chinese banking system,as well as beneficial to the enterprises to make proper use of the changes of the external financing environment,strengthen the connection with the banking institutions,and maintain the needs of the continuous development of the enterprises.