Author(s)

Yangqing Xiao, Yinping He

Corresponding Author

Yangqing Xiao

Abstract

Based on the data of listed small and medium enterprises in China from 2007 to 2016, this paper uses Euler equation model and GMM method to analyze the financing constraints faced by SMEs and the role of commercial credit in easing financing constraints. The results show that financing constraints do exist in SMEs and cannot be eased by commercial credit. Therefore, small and medium enterprises need to find other ways to solve the financing problem.

Keywords

Small and Medium-Sized Enterprises, Financing Constraints, Commercial Credit