The Research On The Relationship Between Financial Structure Optimizing And Growth Of The SMEs In China

With the further development of China's economy, the vigorous development of the national SMEs occupies an increasingly important position in the national economy. However, the mortality rate of SMEs in China is very high, among a wide variety of reasons, the unreasonable financial structure is one of which. Since this century, the Chinese government has begun to pay attention to the development of SMEs, the problem of SMEs' financing has attracted lots of attention of theory and practice fields. But in the circumstance of China mainly through debt financing, whether all the enterprises facing the difficulty of financing are appropriate to use debt financing? What is the optimal ratio of debt financing? To answer these questions, we can not find answers from the "Golden Decade" in the financial structure theory, from the beginning of MM theory, the "Golden Decade" financial structure theory takes the corporate value or maximize shareholder wealth as optimization objective of the financial structure; this doesn't match with the actual situation of China's SMEs. China's SMEs firstly choose the enterprises growth as optimal objective when facing the financial structure adjustment, because with the high mortality rate in SMEs, not growing on means death. Product market competition theory after the "Golden Decade" started to study on the optimization of corporate financial structure from the perspective of the enterprise's market competitive capacity, but the theory starts on Oligopolistic Competition and can not be directly used for SMEs, Therefore, study on the SME financial structure optimization has a great theoretical significance. Secondly, growth is the direct and effective response to whether SMEs financial structure is reasonable or not, reasonable financial structure is linked with the sustained and healthy development of SMEs. It can be said that the reasonableness and effectiveness of the financial structure is the necessary conditions to improve SMEs growth. Therefore, the topic selected for research has the time urgency and important practical significance.This paper chooses the relationship of financial structure of China's small and medium-sized listed companies and growth as the research object, using dialectical analysis, empirical analysis and econometric analysis, on the basis of SMEs theory, theory of growth and financial structure theory, by analyzing the growth of SMEs in China, the current situation of financial and the international comparison of them, analyzes the impact of financial structure optimization on SMEs growth.Based on the product market competition theory, this paper constructs relation model of the SME financing structure optimization and the growth, using principal component analysis method to establish a small and medium-sized listed companies evaluation system consisting of 1 first grade indexes, 4 second grade indexes, 14 third grade indicators, and ranks 214 small and medium-sized listed companies in China. Then, study the relationship between the financial structure and growth of SMEs, the influence factors of SME debt financing risk states, the influence factors of SMEs financial structure, by descriptive statistics and regression analysis, the conclusions are as follows:1. According to the deduction of theoretical model, the debt financing has a different impact on enterprises with different financing risks, this paper uses Z value model to measure the SME financing risks, through the evidence we find that, as for the small and medium-sized listed companies whose Z> 2.4, that is the small-risk of debt financing in this paper's theoretical model, there is a significantly positive correlation between financial structure with growth, and these companies are appropriate for the use of debt financing; as for the small and medium-sized listed companies whose Z <2.09, that is the high-risk of debt financing in this paper's theoretical model, there is a significantly negative correlation between financial structure with growth, and these companies are not appropriate for the use of debt financing.2. SMEs' debt financing risks is not just impacted by the financial structure, but also impacted by the debt financing risk control function, which is impacted by the industry, corporate governance, and other exogenous factors, which leads to different SMEs has different debt risk in the same assets-liability ratio condition. This paper takes two categories of enterprises as the explained variable, the small-risk debt financing enterprises are assigned 1, and the high-risk debt financing enterprises are assigned 0. Using Logit Model to distinguish its influencing factors, the results show that: the higher share proportion of the largest shareholder, the higher the probability of small financing risk of enterprises; the smaller the financing risk of the enterprises, the higher dividends to pay; the longer the listed companies, the more vulnerable to financing high-risk status; the greater of the size of the business, the more vulnerable to high-risk financing status; the effective tax rate and industry difference are not the major factors in the control function of debt financing risk.3. This paper takes use of cross-regression model to test a group of variables which affect the financial structure of China's SMEs. Through empirical study we find that the factors which have a positive correlation with financial structure should include enterprise size, financial distress, assets structure and the ability of operating assets; while the factors which have a negative correlation with financial structure include debt paying ability, profitability, forming inner resource ability, tax effect, assets capability and ownership structure. In addition, industry factors have a great impact on financial structure of SMEs, while the SMEs' ownership doesn't have greatly impact on financial structure.At last, the paper has provided some useful policy suggestion on financial structure to realize the sustainable growth of SMEs, including credit rating, bank transformation, direct financing, corporation governance, marketing environment and so on. Theoretically, it is helpful to remedy the defects of such research field at home and abroad, which will develop and perfect the theory of SMEs growth and financial structure; in practice, it is useful to make out and optimize the effective policy of financial structure, promoting the development of SME in China higher, faster and much better.