On Small And Medium-sized Private Enterprises In The Capital Structure

This paper studies on the capital structure problem of small and medium-sized private enterprises. The problem of capital structure plays an important role infinancial management, which is not only in the theory, but also a fact-Manymodels and theorems in financial theory are seeking the relation between the capital structure and the maximization of the value of the enterprise, and in practice every enterprise must ponder how to arrange its capital structure. In our country, the small and medium-sized private enterprises, many of which are walking up to the mature phase, now have been a very important part in economics. Therefore, the choice and optimize of capital structure is especially significant for small and medium-sized private enterprises.The whole paper is divided into 5 parts. First I summarize the content and meaning of the thesis, and make a definition of capital structure and the small and medium-sized private enterprises. Next, in chapter 2 I review some classical theories of capital structure begun from the MM theorem. These theories can all be regarded as a tradeoff in broad sense, so I make a tradeoff analysis model as basic, and expand some assumptions in the model to introduce and hackle the theories, in which I can get some enlightenment on capital structure. From chapter 3 I start todiscuss the specific problem-the characteristic of the small and medium-sizedprivate enterprises and its capital structure., which include the asset-liability ratio, the inner structure of the debt and owner's equity, the consideration of the owner, capital structure and assets structure, capital structure and investment, capital structure and inside administration structure ,etc. The fourth part analyzes thefactors influenced the capital structure from two respect-external environmentaland the inside enterprise's factor, especially the financing channel, size of the enterprise and growth, etc. Finally I sum up to the optimization of the capital structure in chapter 5. This part is explained in three respects. First, on the externalenvironment condition, I make emphasis on the problem of the small and medium-sized enterprises board market. Second, on the inside condition I mainly discuss family business and modern enterprise system. Third, adhere to the relative thought optimization of capital structure should consider enterprise's reality, and it is a course that should be adjusted constantly according to the situation.Through the discussion of study on capital structure of small and medium-sized private enterprises, there are some following conclusion views mainly in this paper. First, the "small and medium-sized private enterprises" in this paper refers to the enterprise whose income from sales and total value of assets are both under RMB 500 millions and established by individual or collectivity in folk, the principal part of which is family business and the township enterprise. Second, the ultimate goal of financial management and the optimization of capital structure is the maximum of enterprise value. Thirdly, given the total amount of assets definitely, only when the marginal substitution rate of the debt to owner's equity equals 1, capital structure reaches optimum and the enterprise value at this moment is the highest. Fourth, the average asset-liability ratio of small and medium-sized private enterprises is not high, but the difference between which is great. The capital in debt relies mainly on short-term borrowed money and commercial credit, and the paid-in capital takes larger proportion in owner's equity. In addition, predominant of one shareholder of family members is common in addition. The structure of the capital behaves comparatively singly wholly. The fifth, the capital structure of small and medium-sized private enterprises is affected by many factors, such as external financing channel, the tax, inside administration structure, scope of the enterprise and so on. The sixth, the optimization of small and medium-sized private enterprises depends on the improvement of external financing channel and...