Analyses of the Herding Behavior for the SMEs Financing Plight

摘要

There has been a vast of thorough researches and advice about the financing plight of SMEs from the side of asymmetric information among the domestic and foreign researchers. This paper is trying to use the theories of behavior finance to analyze the difficulty in essence and illustrate that the intrinsic reason of financing plight for such enterprises is herd behavior of decision made by managers through establishing the utility function of bank loan managers. The results indicate that the managers will be inclined to invest in large enterprises instead of SMEs considering their own reputation and reward.