Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises
Small- and medium-sized enterprises (SMEs) are the important driving forces for the growth of China’s economy. However, financing difficulty has always been the important problem besetting the development of SMEs for a long time. In particular, in recent years, US subprime crisis in 2008 caused a he...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/453458 |
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| author | Xiuzhen Wang Yi Hu Xiaohua Xia Ying Deng |
| author_facet | Xiuzhen Wang Yi Hu Xiaohua Xia Ying Deng |
| author_sort | Xiuzhen Wang |
| collection | DOAJ |
| description | Small- and medium-sized enterprises (SMEs) are the important driving forces for the growth of China’s economy. However, financing difficulty has always been the important problem besetting the development of SMEs for a long time. In particular, in recent years, US subprime crisis in 2008 caused a heavy blow to the development of some externally oriented SMEs. Thus, how to effectively overcome financing predicament for the SMEs is crucial for Chinese government. In this paper, based on microdata from China Industrial Enterprise Database, propensity score matching (PSM) method is adopted to conduct empirical analysis about the treatment effects of indirect financing level of SMEs under different systems. Empirical results reveal that state-owned enterprises enjoy indirect financing advantages compared with other enterprises and there is certain ownership discrimination against foreign-funded enterprises and private enterprises. In particular, the indirect financing rate of state-owned enterprises is 1.4% higher than that of other enterprises, and the indirect financing rate of foreign-funded enterprises is 6% lower than that of other enterprises; private enterprises are advantageous in indirect financing compared with other enterprises; however, indirect financing rate of private enterprises is 1.8% lower than that of state-owned enterprises, which also reveals ownership discrimination to certain extent. |
| format | Article |
| id | doaj-art-18c15a00ed1b4fd9b56d734fcd43ce9e |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-18c15a00ed1b4fd9b56d734fcd43ce9e2025-08-20T03:54:12ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/453458453458Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized EnterprisesXiuzhen Wang0Yi Hu1Xiaohua Xia2Ying Deng3School of Economics and Management, Beijing Jiaotong University, Beijing 100044, ChinaSchool of Management, University of Chinese Academy of Sciences, Beijing 100190, ChinaInstitute of China’s Economic Reform and Development, Renmin University of China, Beijing 100872, ChinaSchool of International Trade and Economics, University of International Business and Economics, Beijing 100029, ChinaSmall- and medium-sized enterprises (SMEs) are the important driving forces for the growth of China’s economy. However, financing difficulty has always been the important problem besetting the development of SMEs for a long time. In particular, in recent years, US subprime crisis in 2008 caused a heavy blow to the development of some externally oriented SMEs. Thus, how to effectively overcome financing predicament for the SMEs is crucial for Chinese government. In this paper, based on microdata from China Industrial Enterprise Database, propensity score matching (PSM) method is adopted to conduct empirical analysis about the treatment effects of indirect financing level of SMEs under different systems. Empirical results reveal that state-owned enterprises enjoy indirect financing advantages compared with other enterprises and there is certain ownership discrimination against foreign-funded enterprises and private enterprises. In particular, the indirect financing rate of state-owned enterprises is 1.4% higher than that of other enterprises, and the indirect financing rate of foreign-funded enterprises is 6% lower than that of other enterprises; private enterprises are advantageous in indirect financing compared with other enterprises; however, indirect financing rate of private enterprises is 1.8% lower than that of state-owned enterprises, which also reveals ownership discrimination to certain extent.http://dx.doi.org/10.1155/2014/453458 |
| spellingShingle | Xiuzhen Wang Yi Hu Xiaohua Xia Ying Deng Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises Discrete Dynamics in Nature and Society |
| title | Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises |
| title_full | Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises |
| title_fullStr | Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises |
| title_full_unstemmed | Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises |
| title_short | Estimation of the Treatment Effects of Ownership on the Indirect Financing of Small- and Medium-Sized Enterprises |
| title_sort | estimation of the treatment effects of ownership on the indirect financing of small and medium sized enterprises |
| url | http://dx.doi.org/10.1155/2014/453458 |
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