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Smes External Equity Financing

Posted on:2006-08-10Degree:MasterType:Thesis
Country:ChinaCandidate:X F FanFull Text:PDF
GTID:2206360152982322Subject:Business management
Abstract/Summary:PDF Full Text Request
The small and medium-sized enterprise (SME) is an important part of the market economy system of our country, but the difficulty in financing is a key issue for development. When we are carrying out the commercial bank reform and the credit is harder to get than before, it is of great significance to develop the external equity financing for SME's developing.This paper explain the concept of the SMEs in our country and the concept of enterprise finance, descript the situation of lacking external equity financing of the SMEs at first, make the firm foundation for the further study. The second, analyses the strong demand of the SMEs due to the character of their high development. In the basis of Pecking-Order theory, a new viewpoint of external equity financing should be superior to credit for SMEs is presented here. The third, the main obstacles of lacking the external equity financing are discussed here in terms of our economy system and the SMEs's present status. Then, two suggestions to enhance the external equity financing of SMEs are provided, they are establishing the multi-level equity market system and set up Investment Company for SMEs. At last, through analyzing the capital structure of one group SMEs before and after they went public two years later in a regression model, analyses the strong demand for external equity financing and conclude the function of equity market for the SME external equity financing. Meanwhile, some policy suggestions are presented according to the analyzing result.
Keywords/Search Tags:small and medium-sized enterprise, external equity financing, multi-level equity market, capital structure
PDF Full Text Request
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