Because of the information asymmetry, small and medium-sized enterprises which are faced financial con- straints can only rely on internal financing. Relationship lending theories indicate that close relationships between small and medium-sized enterprises and banks can ease the financial constraints resulting from asymmetric information. Taking Jiangsu province as an example, the paper studies whether the relationships can alleviate the financial constraints. It concludes that the relationships between small and medium-sized enterprises and banks can really ease the financial constraints, but...
