Author(s)

Kangyi Lin

School of Economy, Jinan University, Guangzhou, China.

The construction of social credit system is an important prerequisite and objective need for the orderly and healthy development of market economy. Through the mechanism of credit information sharing and credit joint reward and punishment mechanism, it reduces information asymmetry and reveals the merits and demerits of social subject credit. It integrates the whole social forces to praise the good faith, punish the breach of trust, and creates a good credit environment. It is a common phenomenon that enterprises are faced with financing constraints which are not conducive to the growth and development of enterprises. This paper examines the influence of the construction of social credit system on the relationship between financing constraints and enterprise growth. It is found that the construction of social credit system can alleviate the adverse effects of financing constraints on the growth of enterprises, which is more obvious in non-state-owned enterprises.

Construction of Social Credit System, Financing Constraints, Growth of Enterprises

Lin, K. (2019) Can the Construction of Social Credit System Alleviate the Influence of Financing Constraints on the Growth of Enterprises?. Modern Economy, 10, 1253-1270. doi: 10.4236/me.2019.104086.