An Empirical Analysis On Determinants Of Capital Structure Of SMEs

This paper selected 39 small and medium-sized enterprises from Jiangsu and Zhejiang province listed on the SMEs Board as the study sample, got their finance data from year 2005 to year 2008 to establish the panel data. Based on the capital structure classical theories, this paper conducted the empirical analysis from three levels on the capital structure influencing factor of JiangZhe SMEs. First of all this paper introduced the static trade-off theory, the agent cost theory, the pecking order theory and the dynamic capital structure theory. In refers to the domestic and foreign literature and unifying the characteristics of JiangZhe SMEs, proposed basic research hypothesis of this paper. Then conducted the analysis of the dependent variable leverage ratio from the section and the time series, obtained capital structure of JiangZhe SMEs'present situation and recent years'change tendency, and implemented the descriptive statistical analysis of the independent variables: enterprise size, profit ability, the assets cover value, growth, the non-debt tax shield, the property fluidity, the stockholder's rights centralism degree, product competitive ability, the loan interest rate, the inflation rate, the bank reserve against deposits rate, obtained JiangZhe SMEs'special characteristic through the study. Divide three levels in empirical analysis stage. The first level -relationship between macro-economic variable and the capital structure, we choose the loan interest rate, the inflation rate, the bank reserve against deposits rate as three targets, obtained all relations are not remarkable through the partial correlation coefficient analytic method using the enterprise microscopic variables as control variables; The second level-relationship between profession factor and the capital structure, through Kruskal-Wallis H examination and the least significant difference (LSD) examination, obtained the capital structure of JiangZhe SMEs exist profession disparity, and this kind of disparity is not caused by the individual profession; The third level-relationship between enterprise microscopic special characteristic and the capital structure, through the establishment of different panel data models and the contrast examinations, found that the fixed effect model fitting degree is the best. The model diagnose result indicated that the enterprise size, growth, the stockholder's rights centralism degree are positive to leverage ratio, the property fluidity, profit ability, the non-debt tax shield are negative to leverage ratio, but the assets cover value and product competitive ability are not remarkable relevant to the enterprise capital structure. Finally based on our findings this paper put forward suggestions from two aspects as the macroscopic policy support and the enterprise self building to help optimizes the capital structure of JiangZhe SMEs and realize the enterprise value maximum.