The Empirical Analysis On Determinants Of The Capital Structure Of Technological Small And Middle Enterprises In Zhejiang Province

Researching on determinants of the capital structure of technological small and middle enterprises and seeking the approach to prove financial support are the necessary way to encourage, cultivate and promote the technological small and middle enterprises' development, as well as enhance the capacity of independent innovation and construct the innovative country. This paper chooses the technological statistical data of Zhejiang province in 2004 and the financial data from CRPE database. Try to use Kruskal-Wallis H nonparametric test, least significant difference (LSD) test and multivariate regression model from the industrial factor and financial factor respectively to analyse the determinant factors of the capital structure of technological small and middle enterprises in Zhejiang province. The result indicated that capital structure existed significant difference between different industries; Firm size and uniqueness were positively related to leverage ratios; Profitability and non-debt tax shields were negatively related to leverage ratios; Collateral value of assets had uncertain relation with leverage ratios. Finn size was the most important factor that determined the capital structure of technological SMEs in Zhejiang province.