Comparative Study Of The Before And After Listing Relationshiop Between Debt Structure And Profitability Of SMEs

The Small and Medium Enterprise Board has developed rather quickly since it started in June,2004. Theoretically, due to the opening of equity financing, the small and medium enterprises'capital structure will change,accompanied by enlarged capital scale, so that it is possible for SMEs to optimize their capital structure, even to perfect the corporate governance structure. However, it has to be studied if facts support the theory. To research this problem deeply, the paper uses 38 companies listed on the SMEB in 2004 as samples on the basis of classic capital structure theory, focuses on the debt structure and profitability, which is respectively the important aspect of capital structure and firm performance, researches the before and after listing relationship of the samples'companies'debt structure and profitability.Firstly, the paper makes the contrast analysis of the debt structure and profitability using the descriptive statistic method, which comes out: after listing in the SMEB, the SMEs' debt ratio has decreased, and so do their profitability. Secondly, the panel-data mode need to be built to make deeper analysis,then the results show as follows:(1)DAR has positive correlation with profitability in the total samples,before-listing and after-listing samples. (2)Debt maturity structure have different relationship with ROE in different samples:Current liability and long-term liability have positive correlation with ROE in total sample, and have negative correlation with ROE in before-listing sample, but it don't show significant correlation between current liability(or long-term liability) and ROE in the after-listing sample.(3)Different types of debt have different relationship with ROE:in the total sample, Short-term bank debt, commercial standing, tax payable and long-term bank debt have positive relationship with ROE, but employee compensation payable doesn't have significant relationship with ROE;these debts all have negative relationship with ROE in the before-listing sample, but have no significant relationship with ROE in the after-listing sample.