Review Of The Small And Middle-sized Enterprises' Financing Structure Theory

Because of the limitations of the economy system and the enterprises themselves, the Small and Middle-Sized Enterprises(SMEs) of our country still exist a great deal of bottlenecks. The most serious one is financing which demands prompt solution. So the problem of financing is becoming the focus of academic study and applied exploration in every country and forming basic financing theory and different financing practice. Circulation of enterprise's capital is the activity of raising the fund for realizing the financial goal, arrangement of financing structure is the core of financing decision. According to the modern financing structure theories, if financing structure of enterprises choosing is different, it will influence the market value of enterprises. The core problem of financing structure theories is correlativity between financing structure and corporation value. Researches of financing structure theories form certain history evolutional track. M-M Theory is the significant beginning of financing structure theories in modern times. After that Tax Gap School and Bankruptcy Cost School derive from M-M Theory. Then some scholars combine the two theories and put forward Trade-off Theory. On later days of 1970s, introduced Unbalanced Information Theory alters the conclusion of "structure non-correlation" resulting from M-M Theory and forms contract theories based on Unbalanced Information Theory. Main contents of contract theories are Agency Theory, Signaling Theory and Control Right Theory. Along with developing of some theories such as Oligopoly Theory, scholars begin to discuss financing structure theories from view of intersectant subjects. For example, Finance Growing Cycle Theory can preferably explain the changing rule of SMEs'financing structure from the viewpoint of long time and development. Based on series of financing structure theories, some scholars make use of empirical approach to prove financing structure theories above from SMEs aspect.Furthermore, relevant researches which publish on overseas and domestic academic journals promote broad and deep discussion about this problem, come into a number of accordant conclusions and put into practice step by step. Just under this background, based on abundant overseas and domestic academic literatures----from early academic discussions to recent empirical researches, in order to provide some help to further discussion, this paper is gonging to briefly review the overseas and domestic literatures about financing structure theories of SMEs in recent years and comment on them relevantly at the same time. According to the history developing track of financing structure theories, this paper summarizes the domestic and overseas literatures from four aspects——financing structure theories in modern times, contract theories, development of financing structure theories and empirical researches of SMEs'financing structure theories. Through further study on literatures, after concluding foreign academic performance, this paper finds some deficiency in existing researches and puts forward new research view. This paper extends studying eyeshot for academic interest of SMEs'financing in our country, does a few tentative researches for the future developments of researches about SMEs. And this also has great realistic and academic significances to promoting SMEs'progress and improving our country's capital supply system.