The Selection Of Medium-sized And Small Enterprise's Financial Structure

The experience of reform and opening-up prove that Medium-sized and Small Enterprise play a very important role in the nation's economics development and system innovation. The financial structure of Medium-sized and Small Enterprise become a hotspot with it's role in nation's economics being more and more important. This article study the effect of Medium-sized and Small Enterprise's entrepreneur in financial structure selection, at the basis of contractual theory. Owing to the unification of ownership and manage power at the Medium-sized and Small Enterprise, the entrepreneur hold both the surplus income power and surplus control power and become the centre of a series contracts. Thus, the entrepreneur are able to use the resource and authority to influence the financial contract, so as to maximize the utilization they hold. This article start with the inter aspects of enterprise to reveal the mechanism of the selection of Medium-sized and Small Enterprise's financial structure ,through establishing a model of surplus income power and surplus control power with finance structure selection. Thus, we will put forward some suggestions to help Medium-sized and Small Enterprise optimize financial structure, boost the development of nation's economy.