Research On Supply Chain Finance To Alleviate Financing Constraints Of Small And Medium-sized Enterprises For Home-based Elderly Care

With the increasingly severe trend of aging in China,the development of the elderly care industry will face great challenges.China has explicitly stated that it aims to establish a home-based elderly care service system that relies on community care and supplements institutional elderly care.However,small and medium-sized enterprises(SMEs)in the home-based elderly care industry,as an important component,face serious financing constraints.Firstly,the small production and operation scale of SMEs in home-based elderly care industry results in insufficient operating cash flow to meet future investment needs.Secondly,due to incomplete information disclosure and lack of qualified collateral,SMEs in home-based elderly care industry are excluded from the credit list of commercial banks.The dual difficulties of internal and external financing make it impossible for SMEs in home-based elderly care industry to continue their business development.Against this background,this paper introduces supply chain finance as a financing model in an attempt to solve the financing dilemma of elderly at home SMEs.This paper firstly compares the literature from two aspects: the research on financing constraints of elderly at home SMEs and the research on the relationship between supply chain finance and elderly at home SMEs;secondly,it summarizes the theoretical basis on which this paper is based and elaborates on the concepts of supply chain finance and elderly at home;then,it analyzes the development status of elderly at home SMEs,the subject of this paper,and constructs an electronic order financing model based on the concepts of elderly at home supply chain and elderly at home.Then,the paper analyzes the current development status of the elderly at home SMEs and constructs the electronic order financing model of elderly at home supply chain finance based on the concepts of elderly at home supply chain and supply chain finance;then,the paper applies the cash-cash flow sensitivity model to the elderly at home SMEs listed on the Shenzhen Stock Exchange from 2015 to 2020,and conducts an empirical regression analysis on the effectiveness of supply chain finance in alleviating their financing constraints.The paper conducts an empirical regression analysis on the effectiveness of supply chain finance in alleviating their financing constraints,and conducts a heterogeneity analysis in four aspects: enterprise type,enterprise size,information disclosure quality and internal control to explore the effect of supply chain finance in alleviating enterprise financing constraints under different conditions,followed by a series of methods for robustness testing and endogeneity testing to ensure the accuracy of the findings;finally,research recommendations are made from the perspectives of enterprises,government,financial institutions and risk control,in in order that supply chain finance can flourish in China and meet the financing needs of more home-based elderly SMEs.This article draws the following four conclusions.Firstly,there exist financing constraints for small and medium-sized enterprises in home-based elderly care.Secondly,supply chain finance can alleviate financing constraints for these enterprises.Thirdly,concerning enterprise types,financing constraints are more severe for product-oriented SMEs in home-based elderly care than for service-oriented SMEs.Concerning enterprise scale,financing constraints exist for relatively smaller SMEs in home-based elderly care,while they do not for larger ones.With regards to information disclosure quality,SMEs in home-based elderly care with poor information disclosure quality face financing constraints,while those with good information disclosure quality do not.With regards to internal control,SMEs in home-based elderly care with poor internal control face financing constraints,while those with good internal control do not.Fourthly,compared to product-oriented SMEs,supply chain finance has a better alleviating effect on financing constraints for service-oriented SMEs in home-based elderly care.Supply chain finance can alleviate financing constraints for relatively smaller SMEs,those with poor information disclosure quality,and those with poor internal control,while larger SMEs with higher information disclosure grades and those with good internal control do not need to obtain financing through supply chain finance mode.