Empirical Study On Correlation Between The Capital Structure Of The Technological SMEs And Their Performance

The matter of capital structure is an important research task which both has great theoretical value and practical meaning. Undoubtedly, it is significantly meaningful to discuss the relationship of capital structure and management performance, first begin with capital, the most basic factor of running a corporation. At present the main objects of domestic study upon the relationship of capital structure and management performance are those public companies listed on main board of the stock market.Nowadays, high-tech industry, as the base of technological competition power, has become the drive of world economic development and an important indicator of synthetic national Power. However, the development of Chinese technological SMEs is late compared with the developed countries and the corresponding theoretical research is immature, so that the technological SMEs are in short of adequate guidance to help them operate companies and don't have thorough understanding of the features of technological SMEs, resulting in the difficult financing situation and the business failures. Thus, it seems very important and urgent to do some research on correlation between the capital structure of the technological SMEs and their performance and finding the best development pattern of technology SMEs, aiming at the features of start-up technology SMEs growth environment and characteristic.In this context, this paper summarizes and analysis the relevant literatures, and explains the nature and characteristics of the technological SMEs. Based on this, this Paper does deep research on the correlation between the capital structure of the technological SMEs and their performance. Using principal component analysis, we make the construction of the technological SMEs comprehensive performance evaluation indicators. Thorough the empirical analysis, we identify the relationship to the corporate capital structure and the performance. From empirical analysis, we can see that asset -debt ratios of the technological SMEs has established the negative link between performances significantly. Our other capital structure factors of the technological SMEs have established the link between performances but not significantly. Based on the conclusion, we offer some concrete countermeasures and advices to refine the technological SMEs'capital structure.