Study Between Capital Structure And Corporate Performance In SME

The matter of capital structure has been had the great research value and research significance, particularly there is a certain influence on corporate performance, which makes it gain much attention from the theory of capital structure and financial communities. At present, the Main Board listed companies are the research objects to explore the relationship of capital structure and corporate performance in China. In this paper, Small Board and medium enterprise(SME) is the research objects. SME has great development potential, its profitability and the ability of independent innovation are strong. Because they have only five years of development history, there's much shortage, such as immature of development and absence of relevant theory in capital structure. In this paper, I study the relationship between corporate performance and capital structure of SME, which can provide some reference in searching reasonable capital structure.First, in this paper I review the theory and literature on the capital structure and corporate performance at home and abroad, and then analyze the current status on Small Board of listed companies, and make descriptive statistics on capital structure and corporate performance. Second, on the basis of theoretical overview and descriptive statistics, I make the empirical analysis use statistical software on the capital structure and corporate performance:I select the EVA as performance indicators, and then I make the regression analysis between the EVA and asset-liability ratio, asset-liability ratio of the square, short-term debt ratio, long-term capital debt ratio, interest-bearing debt ratio and non-interest bearing debt ratio find the relationship. The conclusion is that there is a optimal capital structure in SME. While long-term capital debt ratio, interest-bearing debt ratio and EVA exact negative correlation, short-term debt ratio, interest-bearing debt ratio and EVA exact positive correlation. Finally, I gain some inspiration according to empirical conclusions, and then gave several suggestions how to improving capital structure and financing environment on SME. Through this thesis research, I hope it can play a role in searching capital structure improving corporate performance to SME.