An Empirical Study On Determinants Of Capital Structure Of Chinese Enterprises Listed On Sme Board

It is well known that the small and medium enterprises (SMEs) played a very important role in fostering social stability, constructing the main market and promoting our national economic development. As to the SMEs'relatively smaller scale, unsure and unstable income, and lack of the mortgaged property,which put the SMEs in a higher risk level, their own financing structures have been influenced.For example,it is difficult to obtain direct debt financing from the banks. In order to make up the financing vacancy of our country's SMEs, to resolve the financing problems of high expanding and high-tech SMEs, on May 27th,2004, the Shenzhen stock market set up the SMEs board officially.Its establishment has expanded direct financing channels and provided the formidable fund support for the SMEs.As a specific group, the SMEs plays a vital role in the national economy. It is essential to have a reasonable capital structure in order to obtain a long-term sustainable development without finance risks. Therefore, it has a real significance to pay attention to and analyze the current capital structure of listed companies in the SMEs board, which represented by the small and medium-sized companies, and factors affected their capital structure. On the basis of available researches on factors affected the capital structure, this article is trying to study the features and data of listed companies in the SMEs board, and analyze the impacts of different factors on their capital structure. Finally, it will give specific suggestions on the capital structure optimization of listed companies.This article divides into six parts.The first part introduced the research goal and significance, the research logical organization and technique, the innovation and insufficiency; The third part firstly reviewed the development and evolvement of the capital structural theory, and then carried on the elaboration to representative theories of the corresponding stages,secondly,this part introduced the domestic and foreign scholars'related achievements on real diagnosis research about influence factors of capital structure,which laid the groundwork for the future theoretical analysis and empirical research. The second part mainly introduced the characteristics of our country's SMEs and the listed company's overall characteristics; The fourth part carried on the preliminary theory analysis to the influence factors of capital structure, related with the front summary partial correlation scholar's conclusion has carried on the evidence, and further has carried on the theory elaboration for the future empirical research.The fifth part has carried on the regression analysis to the sample data, then come to the conclusions; The sixth part proposed the related suggestion to improve the capital structure.Through the empirical research, this article draws some conclusions:(1) Industry factors have a significant influence on the capital structure of Chinese SME board listed companies. (2) speaking of the capital structure, only the concentration degree of stockholder's rights do not pass the significance examination, enterprise scale, growth, the proportion of collateral assets, profit ability and non-debt tax shield passed the significance examination; (3) The enterprise scale, expanding and proportion of collateral assets positively relates to capital structure; Profit ability, the non-debt tax and Proportion of stockholder's rights shield negatively relates to the capital structure; (4) Among the explanatory variable which chooses, according to the explanatory variable influence extent: profit ability> non-debt tax shield> property guarantee value> scale> growth> proportion of stockholder's rights.This article is based on the empirical analysis. In the part of empirical study, firstly it made a descriptive analysis on the related variables which selected by statistics measure. Thereafter, it processed a regression analysis on the relationship of related variables by using OLS method. In the primary analysis of factors affected the capital structure, we adopted the previous theory of capital structure to analyze the possible influences on capital structure of every variable. On the basis of considering qualitative analysis, the article made a deep quantitative analysis by fundamental tools of econometrics and statistics.This article has selected 194 companies which listed in the small and medium-sized board before December 26th,2007 (excluding some companies which do not satisfy selection standard) as the sample, using the finance data in 2009 to carry on the regression analysis.As we know,listed on the market can significantly influence the company's management. In order to reduce and avoids this kind of influence as far as possible, this article has not selected finance data in 2008, while uses the finance data in 2009 which is one year away from closure deadline.It is a short time since the SMEs board has been established, so the quantity of the companies in this broad is small,which causes many real diagnosis researches, in order to obtain more years data, not to take essential buffer into the consideration when selecting the data, while this article really do.Since there is only a short time after the setting up of SMEs board, and the number of sample companies are limited, this article just made a descriptive and regression analysis on the sectional data, without linking it with time series to analyze the panel data. Regarding to the industry factor, the article only carried out a statistic description and parameter test, without adding it into the model for further analysis. With the restriction of the source of data, the macro factor also wasn't taken into account.