Empirical Analysis On Influencing Factors Of Capital Structure Of The Technological Small-middle Enterprises

Capital structure theory has attracted Extensive discussions and researches since Modigliani and Miller advanced the foundation theory of modern Capital structure theory-MM theorem in 1958. What the enterprise capital structural theory study is how enterprises should arrange capital structure during their development or contraction stage, that is, how the enterprise should determine its own capital, equity capital and debt capital ratio for the sake of its market value maximization. To put it in other word, How to find the optimal capital structure of enterprises is the central tasks of capital structural theory. Therefore it is very important to identify the influential factors of the enterprise capital structure and figure out the relationship between them.There are a number of complicated factors in relate to capital structure.The current researches about capital structure factors are largely theoretical studies, and empirical studies are relatively seldom. Moreover, the existing empirical research has many deficiencies, such as picking influence factors subjectively; using too few factors or the variable indicators which belong to the same factor was selected on a subjective basis rather through the empirical methods, or simply does a case study of a typical enterprise. So this paper attempts to make some improvement in the analysis of influence factors.This article based on the listed companies of SME board; make an empirical research of small and medium-sized enterprises engaged in science and technology about their capital structure factors. First, the article discusses the relevant theoretical basis of the capital structure; Secondly, this article does a qualitative analysis of small and medium-sized enterprises capital structure based on their characteristics; Thirdly, with listed enterprise's financial data, this article carry the empirical research analysis to the relevance between the enterprise's capital structure(debt-to-total-assets ratio) and the influence factors; Finally, this article make some recommendations to optimize the enterprise's capital structure based on the empirical analysis. Specifically, This paper is divided into the following chapters:First chapter, introduction. This part mainly introduced the Significance of this article, the present status of studies on this subject the research, the innovation and areas that need to be improved.Second chapter, theoretical basis. This article is based on the theory-MM, the trade-off theory, agency theory and pecking order theory.Third chapter, the present situation analysis of capital structure. A case of listing of the small-middle enterprises, This chapter has analyzed the capital structure present situation of the technological small-middle Enterprises. These analyses include descriptive statistics from overall, debt and shares aspective.Fourth chapter, capital structure influence factor analysis. This chapter has mainly analyzed the macroscopic influence factors(including level of economy development, government policy, financial environment, income tax and so on) and the microscopic influence factors (including enterprise scale, non-debt tax shield, pays off adebt ability, profit ability, transport business efficiency and so on) of the technological small-middle Enterprises. These analysis are qualitative analysis.Fifth chapter, empirical research. Based on the sample of 71 listed companies of SME board, This article calculate all the variables using the datas in 2006 financial statement and analyze the relationship bewteen the factors and the capital structure by qualitative methods. This paper has come to the following conclusions: there is a significant correlation bewteen the enterprise scale and the enterprise capital structure, and a significant negative correlation bewteen the non-debt tax shield and the enterprise capital structure; Solvency influence the capital structure mostly and was negatively influence the debt-to-total-assets ratio; the profit ability has a significantly negative correlation with the enterprise capital structure; and there is a significantly positive correlation bewteen business efficiency and the enterprise capital structure; of the other factors do influence the enterprise capital structure but the relation is weak.Sixth chapter, suggestion. With empirical results, this chapter provides some advice to optimize the capital structure of the technological small-middle enterprises, From both the enterprises and the external environment aspect.