Acta Geographica Sinica ›› 2019, Vol. 74 ›› Issue (6): 1149-1162.doi: 10.11821/dlxb201906006

• Urban and Regional Development • Previous Articles     Next Articles

Analysis of financing costs of industrial enterprises in Beijing-Tianjin-Hebei region from geographic perspective

LI Bo1,2,LI Qihang3,SUN Wei1,4()   

  1. 1. Institute of Geographic Sciences and Natural Resources Research, CAS, Beijing 100101, China
    2. International College of Business and Technology, Tianjin University of Technology, Tianjin 300384, China
    3. Center of Economic Research, Shandong University of Finance and Economics, Jinan 250014, China
    4. School of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China
  • Received:2018-06-22 Revised:2019-03-05 Online:2019-06-25 Published:2019-06-20
  • Contact: SUN Wei E-mail:sunw@igsnrr.ac.cn
  • Supported by:
    Youth Fund for Humanities and Social Sciences of the Ministry of Education(16YJCZH040);Youth Fund for Humanities and Social Sciences of the Ministry of Education(14YJCZH078);National Natural Science Foundation of China(41630644);National Natural Science Foundation of China(41871117);Social Science Foundation of Beijing(14CSB010);Shandong Taishan Scholar Youth Expert Support Program

Abstract:

Difficulties in corporate financing and high financing costs are the major problems that have constrained Chinese real economy, especially the development of non-state-owned economy in recent years. The geographical distance between industrial enterprises and branches of commercial banks is one of the factors that cause high financing costs. Due to cultural differences, transportation costs, information asymmetry, the geographical distance between industrial enterprises and branches of commercial banks will increase the financing costs of industrial enterprises. At the same time, an increase in the number of branches of commercial banks within a certain geographic radius will reduce the financing costs of enterprises. Based on technologies of data mining including Geocoding API in Baidu map, we calculate the geographical distance between industrial enterprises and branches of commercial banks in the Beijing-Tianjin-Hebei region. This paper quantitatively analyzes the correlation among financing costs of enterprises, the distance between enterprises and branches of commercial banks, and the number of branches of commercial banks in a radius of 1-5 km. Then we explain the mechanism of how the geographic distances will affect the financing costs of enterprises. The results show that: (1) within the 1-5 km radius, the closer the industrial enterprises are to the commercial banks (or the more branches of commercial banks), the lower the financing costs. (2) The geographic distance has a significant impact on both state-owned and non-state-owned industrial enterprises. Between them, non-state-owned enterprises have a higher level of significance. The number of branches of commercial banks within 1-5 km radius shows the same tendency. (3) The financing cost of industrial enterprises located in Beijing and Tianjin does not show statistical correlations to the distance between industrial enterprises and branches of commercial banks, and but it is negatively related to the number of branches of commercial banks within certain radius. The financing cost of industrial enterprises located in Hebei are positively correlated with the distance between industrial enterprises and branches of commercial banks, and it is negatively correlated with the number of branches of commercial banks. (4) The distance to branches of commercial banks affects heavy industry and labor-intensive industry more significantly. The number of branches of commercial banks within a radius of 1-5 km has little impact on different industries.

Key words: financial geography, bank, corporate financing, geographic distance, Beijing-Tianjin-Hebei