Private enterprise financing system

Author: Zhang Yuming
Publisher:
Publish Date: 2003-08-01
Features: Based on a comprehensive analysis of the current situation of financing gaps in private enterprises, including capital financing gaps and debt financing gaps, as well as their growth patterns and financing characteristics, this book argues that the fundamental reasons for financing gaps are the severe information asymmetry leading to bank credit rationing, the inconsistent risk levels requiring diversified risk-sharing mechanisms and financing strategies, and the imperfect contracts causing credit risks. To address this issue, it is essential to start from the enterprise itself and create a favorable external financing environment, effectively eliminating the information asymmetry of private enterprises, establishing a scientific risk-sharing mechanism and social support system, with the key being the construction of a financing system for private enterprises.