Study On The Capital Structure Of SMEs Of Hi-tech

Small technology companies are important force to optimize the structure of China’seconomy, enhance economic vitality, and build an innovative country. Poor condition of thecapital structure of the financial market imperfections is the mainly reason to weaken of thefinancial strength of small technology companies, hindering the normal development of smalland medium technology R&D and innovation activities. Studying the capital structuralcharacteristics of small and medium technology enterprises and analyzing the main factorsaffecting capital structurehas very important significance to solve the financing problem ofsmall and medium sized technology companies, and promote the development of small andmedium sized technology companies, increase employment opportunities and make thesociety development be stable.The thesis consists of six components:The first part is an introduction, mainly narratethe background and meaning, definethecontent and research methods and the strict core concepts, and comb the relevant literatureresearch results carefully,with combiningthe characteristics of small technology companiesfinally. The second part introduce the representation theory of capital structure classified,including net theory, MM theory, the trade-off theory, agency cost theory and financing ordertheory. The theoretical laid an important theoretical basis forthe analysis and empiricalresearch article of small technology companies on capital structure. The third part is adescriptive statistical analysis,taking the first listing on the GEM of36companies as samples,analyze of the capital structure and debt structure from two aspects of the capital structure ofsmall technology companies conducted. The fourth part analyze the main factors deeply fromthe macro and micro perspectives, and eight aspects of affecting the capital structure of smalland medium-tech enterprises, and offer corresponding research hypotheses. Based on thefourth part of the theoretical analysis, the fifth part made an empirical test of the main factorsaffecting the capital structure of small and medium sized technology companiesusing thepanel data model. The sixth part summarized the study of the analysis, and raised countermeasures of optimization of small technology companycapital.Through descriptive statistical analysis of the sample enterprises in the capital structureand debt structure, we found that for the special needs of R&D and innovation, business hasa special preference for equity financing.Public financing is a milestone for the futuredevelopment of the enterprise.Atthe part of debt financing, short-term has an overwhelmingproportion of the debt, in which the commercial credit is the mainly part. On the whole, thefinancial market is not perfect and financing is limited, make the inherent requirements ofcapital structure and corporate status of research and innovation obvious not suited.The outcome of the empirical test found that macroeconomic conditions (GDP) wassignificant positive correlation with the capital structure of small technology companies,changes in interest rates and corporate debt levels was negatively correlated. Microeconomicfactors, the size of the company, asset collateral value, growth and innovation weresignificantly positively correlated with the capital structure, profitability and capital structurewas significantly negatively correlated with the capital structure and operational capabilitiescorrelation is not significant. Among of the various impaction factors,innovation is the maindeterminants as the core competitiveness of small and medium-tech enterprises, the impact onthe capital structure is the greatest.In view of the above analysis, we propose four ways to develop our industrial investmentand venture capital fund: provide equity financing to support the development and innovationof small technology companies; improve the small board and GEM conditions to allow formore development potential of small and medium sized technology companies borrow forcethe stock market by leaps and bounds; educe the access threshold for financial institutions,strengthen competition and incentive to provide mechanisms to protect small andmedium-tech enterprises indirect financing; improve the management, standardized operation,and strive to enhance their strength.