TITLE:
Can the Construction of Social Credit System Alleviate the Influence of Financing Constraints on the Growth of Enterprises?
AUTHORS:
Kangyi Lin
KEYWORDS:
Construction of Social Credit System, Financing Constraints, Growth of Enterprises
JOURNAL NAME:
Modern Economy,
Vol.10 No.4,
April
19,
2019
ABSTRACT: 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.