Factors Influencing Bank Financing Quality of SMEs in Clusters

This paper proposes a Box-Cox transformation on linear function based on foreign research and makes an empirical study on relationship between SMEs' bank financing quality and SMEs' vertical relation with bank as well as their inter-firm relationship in clusters, and in order to explore the results deeply, we hold focus discussion with sample companies. The empirical study indicates that hard information has significant influence on SMEs financing quality in clusters under the condition of neglecting other factors. However, with consideration of both hard information and soft information, soft information exerts significant positive effect on bank financing quality while the effect of hard information on financing quality has been reduced. Most importantly, network information also has significant effect on clusters SMEs financing quality.