Liu Yun, Zhang Yifei, Fang Heyang, Chen Xin
School of Finance, Shanghai Lixin University of Accounting and Finance, Shanghai, China.
School of Accounting and Finance, The Hong Kong Polytechnic University, Hung Hom, Hong Kong.
Small Bus Econ (Dordr). 2022;58(2):807-828. doi: 10.1007/s11187-021-00474-9. Epub 2021 Mar 26.
How does the COVID-19 affect SMEs' financing in emerging markets? In this paper, we investigate the impact of the COVID-induced shock on Chinese SMEs' line of credit (LOC) using deal-level data. As Hubei province was mostly affected, we employ a difference-in-differences approach with the propensity score matching (PSM-DID) and compare Hubei SMEs' credit responses before and after the outbreak relative to those of non-Hubei SMEs. Our results suggest that Hubei SMEs' credit demand reduced significantly compared to that of non-Hubei SMEs, and the adverse effects were more pronounced for the non-state-owned enterprises (non-SOEs) and the SMEs without prior bank relationships. Moreover, we show a negative impact on non-Hubei SMEs having supply chain relationships with Hubei province. Such effects rippled through the supply chain and exerted an intensified strike on the SMEs with Hubei customers. Finally, we find the state-owned banks eased the LOC to Hubei SMEs during the pandemic outbreak. Chinese SMEs' credit demand deteriorated after the COVID-19 outbreak, though supported by the state-owned banks. How does the COVID-19 affect SMEs' financing in emerging markets? In this paper, we investigate the impact of the COVID-induced shock on Chinese SMEs' line of credit (LOC) using deal-level data. As Hubei province was mostly affected, our results suggest that Hubei SMEs' credit demand reduced significantly compared to that of non-Hubei SMEs, and the adverse effects were more pronounced for the non-state-owned enterprises (non-SOEs) and the SMEs without prior bank relationships. Moreover, we show a negative impact on non-Hubei SMEs having supply chain relationships with Hubei province. Such effects rippled through the supply chain and exerted an intensified strike on the SMEs with Hubei customers. Finally, we find the state-owned banks eased the LOC to Hubei SMEs during the pandemic outbreak. According to our study, government COVID-supportive policies should target the SME subgroups such as non-SOEs, firms that heavily rely on supply chain, and those without stable bank relationships.
新冠疫情如何影响新兴市场中小企业的融资？在本文中，我们使用交易层面的数据，研究了新冠疫情引发的冲击对中国中小企业信贷额度（LOC）的影响。由于湖北省受影响最为严重，我们采用倾向得分匹配法的双重差分法（PSM-DID），比较了湖北省中小企业在疫情爆发前后与非湖北省中小企业的信贷反应。我们的研究结果表明，与非湖北省中小企业相比，湖北省中小企业的信贷需求显著下降，且对非国有企业（非SOE）和此前没有银行关系的中小企业的不利影响更为明显。此外，我们发现与湖北省有供应链关系的非湖北省中小企业也受到了负面影响。这种影响通过供应链蔓延，对有湖北客户的中小企业造成了更大冲击。最后，我们发现国有银行在疫情爆发期间放宽了对湖北省中小企业的信贷额度。尽管有国有银行的支持，但新冠疫情爆发后，中国中小企业的信贷需求仍有所恶化。新冠疫情如何影响新兴市场中小企业的融资？在本文中，我们使用交易层面的数据，研究了新冠疫情引发的冲击对中国中小企业信贷额度（LOC）的影响。由于湖北省受影响最为严重，我们的研究结果表明，与非湖北省中小企业相比，湖北省中小企业的信贷需求显著下降，且对非国有企业（非SOE）和此前没有银行关系的中小企业的不利影响更为明显。此外，我们发现与湖北省有供应链关系的非湖北省中小企业也受到了负面影响。这种影响通过供应链蔓延，对有湖北客户的中小企业造成了更大冲击。最后，我们发现国有银行在疫情爆发期间放宽了对湖北省中小企业的信贷额度。根据我们的研究，政府支持新冠疫情的政策应针对非国有企业、严重依赖供应链的企业以及没有稳定银行关系的企业等中小企业子群体。
