Financial Theory And Financial Behavior Of Small And Medium Enterprises

At present, small and medium enterprises try to utilize the existing financial theory and research findings to improve their quality of financial management for the development. However, SMEs in China have obvious individual characteristics and differences. It has certain theoretical and practical significance that study the differences between their behavior and the existing financial theory and SMEs can effectively guide own financial behavior or not with directly using the existing financial theory.Based on a real problem, this paper presents financial theory and financial behavior of SMEs. This article will act in accordance with the contents of SMEs is divided into the financial investment, financing and working capital management in three aspects. Use questionnaire survey to direct attention to "the course of conduct" of SMEs, and finally through descriptive statistics, identify the financial behavior of small and medium enterprises characteristics. In the process of questionnaire design, this paper bases on the classical financial theory and the content of the conclusions of previous studies. Then refine the questionnaire investigation into a topic. Make the financial theory and financial behavior of SMEs in direct contrast analysis and point out the differences between the small business financial behavior and the classical theory. That can provide a more comprehensive reference for future research of financial theory. The survey questionnaires were distributed and 300 copies,100 copies of questionnaires, of which 63 questionnaires were returned as 21.88%. To get the real answer, the survey does not help with the administrative agencies, and it can be considered entirely private capacity independently in this survey. The recovery rate of questionnaires was satisfactory and efficient.Value obtained through the investigation the following conclusions:1.On investment, the investment choice of SMEs is rational behavior for the purpose of the development and implementation of the company strategy. It's the same as the large domestic and foreign listed companies basically. However, during the project evaluation and decision-making process, China's SMEs rarely use "sensitivity analysis" method, the internal rate of return and net present value method witch are fashion in the international.2. In the financing, the order of SME financing is short-term loans-long-term loans-retained interests-equity financing. It's not only different from theory and financing order, but also different from the order of listed corporate finance.3. In the working capital management, cash management practices of SMEs in China is not reasonable. There are insufficient funds or excess phenomenon. However, the proportion of accounts receivable management and inventory control, are able to maintain the conclusion of the study at home and abroad within the limits prescribed.Based on these results, the paper concluded:financial behavior of SMEs in China exists more significant difference from the financial theory and. Finally, the above conclusions for some reason analysis, recommendations, and limitations and further research this paper provides a brief description.