Influence of Financing Efficiency on Operating Net Cash Flow of SMEs in Nine Cities of Pearl River Delta

Abstract

At present, our small and medium-sized enterprises have created more than 50% of tax revenue, and more than 60% of GDP, they are the important prerequisite and the main driving force to achieve the development of economic quality. Meanwhile, the nine cities in the Pearl River Delta account for 80% of Guangdong's GDP. The study on the financing efficiency of SMEs represented by the new third board of listed companies is of great significance to the development of Grand-Baie and the deepening of reform and opening-up. This paper uses the data of the Wind database from 2016 to 2020 and takes the SMEs listed on the New Third Board in nine cities of the Pearl River Delta as the research samples. Firstly, the DEA model is used to analyze the financing efficiency of SMEs in nine cities. Secondly, the relationship between financing efficiency and operating net cash flow is compared and analyzed. Finally, it will study whether the improvement of financing efficiency can help enterprises improve operating net cash flow. The results show that operating net cash flow is negatively correlated with financing efficiency. The higher the financing efficiency of SMEs in the New Third Board, the smaller the operating net cash flow performance. During the listing period of the New Third Board, the financing efficiency of enterprises keeps improving, which promotes the further development of enterprises. Different from the previous studies of various scholars, this paper selects the very representative Pearl River Delta region as the model to provide a model for governments at all levels on how to promote the development of small and medium-sized enterprises and provide substantive suggestions for the country to encourage and promote the development of small and medium-sized enterprises, to better promote the high-quality development of the economy.