Research on Financing Preference and Performance of Sci-tech Finance for Sci-tech SMEs

Abstract

To solve financing problem of sci-tech SMEs in different enterprise life cycle, this paper uses the panel data of Chinese sci-tech SMEs from 2010 to 2016, establishes individual fixed effect model to examine financing preference of sci-tech finance including government finance, capital market, commercial bank, and venture capital, and to assess financing performance for sci-tech SMEs. The results show that: as a whole, capital market channel positively promotes the innovation and development performance of sci-tech SMEs; but in different enterprise life cycle, different sci-tech finance preference have different performance on sci-tech SMEs. In the growth period, the capital market and government finance are the main channels. In the mature period, the capital market and commercial bank support are the chief factors. But in the recession period, SMEs primarily rely on government finance.