Impact of exporting signal on enterprises’ financing constraints: evidence from private enterprises

WENG Yangqin1 SHI Xinzheng1

(1.Tsinghua University School of Economics and Management)

【Abstract】Financing constraint is an important factor impeding the development of private enterprises. From the perspective of information asymmetry and market synergies, this paper analyzes the cause–effect relationship between the exporting signal and the external and internal financing. Using the database of Chinese industrial private enterprises from 1997 to 2009, this paper applies the “distance to seaport” as the instrumental variable and finds that exporting can relieve the external and internal financing constraints for private enterprises. Moreover, the empirical results are consistent with several robustness tests. Under the background of the Belt and Road, the government should spare no effort to support and promote the process of marketization, and solve the problem of soft budget constraints of state–owned enterprises and government–related organizations effectively. In addition, the government should take advantage of more comprehensive information to help banks and other financial sectors to allocate investment fund rationally. With these efforts, private enterprises with exporting potential and ability will be more likely to alleviate the burden of external financing through releasing the signal of exporting, and then promote the ability of internal financing to achieve sustainable management.

【Keywords】 privates enterprises; exporting signal; financing constraints;

【DOI】

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(Translated by ZHANG Shuo)

    Footnote

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This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 04, Pages 144-156

April 2018

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Article Outline

Abstract

  • Introduction
  • 1 Theoretical mechanism and assumptions
  • 2 Model setting and data description
  • 3 Empirical results and interpretation
  • 4 Conclusive review
  • Footnote

    References