Understanding the effects of the tiered system in the national equities exchange and quotations (neeq) on the growth of technology-based smes from the perspective of financing constraints

Technology-based small and medium-sized enterprises (SMEs) are important in promoting national economic and social development and industrial transformation and upgrading. However, the difficulty of financing, narrow financing channels, and inadequate financing environment are important reasons that restrict the growth of science and technology-based SMEs. To examine whether the important new regulations proposed by the tiered system in the National Equities Exchange and Quotations (NEEQ) as a guide to investment and financing docking, including differentiated regulatory arrangements, can screen out high-quality enterprises and promote the growth of enterprises, technology-based SMEs listed on China's NEEQ from 2016 to 2020 were selected as the research sample, based on signaling theory, the impacts of tiered system in the NEEQ on the growth of technology-based SMEs were explored from the perspective of financing constraints. Results show that the tiered system in the NEEQ enhances the attractiveness and recognition of high-quality enterprises and can effectively screen out technology-based SMEs with better financial performance and stronger innovation capability. This system also enables technology-based SMEs entering higher tiers to receive more market attention and financial support, significantly easing the environment of corporate financing constraints and enhancing the efficiency of corporate financing. In addition, equity financing has a positive effect on enterprise growth, whereas technological innovation capability plays a positive mediating role in the impact of equity financing on the growth of technology- based SMEs. The conclusions obtained from this study help clarify the transmission path of the impact of the division of the multi-level capital market on enterprise growth and also provide a theoretical basis for future SMEs financing policy formulation and multi-level capital market improvement and development.