Research On Financing Decision Of Small And Medium - Sized Enterprises Based On Adizes's Corporate Lifecycle

As the main participants and embodiments of the market economy,small and medium-sized enterprises make great contributions to promote national economic growth and to maintain social stability.As the promotion of popular entrepreneurship,innovation and supply-side structural reform,the government attaches great importance to the development of the SMEs.Therefore,the SMEs get the further release of the development potential.But the funding issue is always the main point which limits the development of SMEs.Especially after the supply-side structural reform,reducing the enterprises' leverage ratio is the top priority,which means a new challenge for the SMEs relying on debt financing.That means managers must make financing decisions for their own,referring to the macro environment and the stage the enterprises are in.But currently,due to not putting a high enough value on the corporate lifecycle,when making financing decisions,the lack of awareness of the impact of cyclical factors often leads to serious waste of resources and decision-making mistakes.Therefore,based on the theory of corporate lifecycle and by means of theoretical and empirical perspectives,this thesis studies the financing decision-making of SMEs in China.First,by means of researching domestic and foreign literatures related to enterprise life cycle and financing decision-making,this thesis summarizes the current state of different researches and provides relevant support for the later research;And then,based on the Inchak Adizes' s Corporate Lifecycle model,this thesis empirically analyzes the factors which have influences on the corporate lifecycle of Small and Medium Enterprise Board enterprises,and extracts the main influencing factors by factor analysis and make them key indicators.Then use clustering analysis to divide the corporate lifecycle of SME Board enterprises into 3 stages: growth,maturity and aging.Afterwards,through the difference test of financing decisions in different corporate lifecycle stages and through the correlation test of corporate lifecycles and financing decisions,this thesis proofs the significant differences among the asset-liability ratio in different corporate lifecycle stages,the negative correlation between the asset-liability ratio and enterprise growth.But the asset-liability ratio in different corporate lifecycle stages has different influences on enterprise growth;Finally,according to the empirical results,this thesis analyzes the operating status and characteristics of the enterprises in different lifecycle stages,and combining the requirements from the supply-side structural reform for the deleveraging of enterprises and the actual situation of SMEs in different stages,makes appropriate financing decisions.It also provide a reference for the SMEs to choose better Financing ways and channels,which helps to promote the healthy and sustainable development of SMEs.The innovation of this thesis is that it combines the corporate lifecycle theory with the financing decisions of SMEs,and uses the empirical analysis to test the correlation between the lifecycle and financing decision of SME Board enterprises.Besides enriching enterprise the theory of lifecycle and financing,this thesis not only extends the traditional capital structure theory,but also innovates the method of the division of corporate lifecycle,so that it makes the corporate capital structure and its lifecycle stage characteristics suitable and financing decision-making more scientific and reasonable,which helps to deepen the supply-side structural reform,to promote the pace of corporate deleveraging.