Bank Connection, Small and Micro Enterprises Financial Constraints:Relationship Finance Analysis Based on a Novel Evolution Game Model
It is well established that China has experienced a significant economic growth in recent two decades and become the second largest economy in the world.However,due to its distinct institutional environment,there is still an imbalanced credit allocation among state-owned firms and private firms,especially small and micro enterprises(SMEs).In fact,SMEs contribute significantly to Chinas repaid economic growth in a way that stimulates innovation and increases employment.As a result of policies and banks preference,SMEs may face many severe financial constraints compared with state-owned enterprises,which largely impedes their development and investment.It is believed that relationship finance can be a way to improve SMEs financial status as it more emphasis on invisible capital to control banks credit risk,such as the degree of familiarity with firms operation,the ability to monitor firms financial performance and evaluate the quality of financial reports,rather than visible capital like the amount of collateral they can provide.In the paper,we simply analyzed main factors associated with financing difficulties at first,which is followed by building an asymmetry model between banks and SMEs based on evolutionary game theory and analyzing how relationship finance can be formed.According to the proposed model,we believe relationship finance is the result of long-term behavioral evolution among banks and SMEs.Therefore,we conclude that in order to improve financing status of SMEs,both banks and SMEs should take efforts to adopt well-developed financial performance evaluation and behavior surveillance system.
financial constraints relationship finance banks credit risk evolutionary game
Tian Yunlin Chen Ping
School of Accounting,Economics and Finance,University of Wollongong,Wollongong,Australia,2522 School of management,Northwest Minzu University,Lanzhou,China,730030
国际会议
大连
英文
85-90
2018-07-06（万方平台首次上网日期，不代表论文的发表时间）