Interactive Coupling Relationship Between Financial Capability And Capital Structure For Small And Medium-sized Enterprises

the Small and Medium Enterprises (SMEs) of our country is the most active business group, and also the main force of enterprise and economic innovation at recent time. In the context of the strategy of national economic structure transformation and technological innovation, SMEs play an important role in facilitating the process of national economic restructuring and technological innovation.The experiences of most successful SMEs show that the reasonable coupling of financial capacity and capital structure is a very critical factor for the survival and development of enterprises in the dramatic changing environment. Thus, The question that how to couple the financial capacity and the capital structure in an appropriate way and to guide the sustainable and healthy development of SMEs in China has become a project which needs to be solved by both academia and industrial experts together.Based on the theories of enterprise management, the capital investment and system theory, The author of this article firstly studied the internal financial ability and the external capital structure of China's SMEs, With the systematic dynamic method, the author constructed the systems of SMEs'financial capacity and capital structure. Secondly, the author explored the coupling relationship between the internal financial ability and the external capital structure of China's SMEs. Thirdly, the author proved that the coupled system of financial capacity subsystem and the capital structure subsystem is effective by introducing the negative entropy analysis into the system. Through the above analysis, the article concluded:Corporate Finance and the Capital Structure of coupling process, and its essence is the dynamic between them, the process of integration and optimization. Finally, based on research findings, the article on the financial capacity of SMEs in China and the capital structure of the status quo and for suggestions for improvement given the current problems.The paper analyzes by the combination of qualitative analysis and quantitative analysis, status analysis, theoretical analysis and analogy argumentation.