Ownership and Indirect Financing of Smes: Estimation Based on Propensity Score Matching

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 this paper, based on micro-data from 2007 China Industrial Enterprise Database, Propensity Score Matching (PSM) method is adopted to conduct empirical analysis of indirect financing level of SMEs under different systems. Research result shows 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.