The game model in medium-small enterprise financing under asymmetric information

Focusing on the asymmetric information in the medium-small enterprises financing market, by applying the methodologies of incomplete information dynamic games and information economics, a signaling game model between medium-small enterprises and financing institutions is given and case analysis is conducted. The study shows that the signal can reveal the true qualities of medium-small enterprises, and the financial institutions can also deduce the future profit of medium-small enterprises and response to its loan application exactly according to the signal.