This paper studys the related theory of capital structure and corporate performance, comprehensive analyzes the related research achievements at home and abroad, and explains the nature and characteristics of the SMEs. Based on this, this paper does deep research on the correlation between the capital strueture of the SMEs and their performance.Firstly, analyse the status of the SMEs' capital structure and corporate performance, and analyse their relationship. On this basis, using principal component analysis, we make the construction of the SMEs comprehensive performance evaluation indicators. From five aspects such as Profitability, operating capacity reflect real level performance of the company. Thorough the empirical analysis, we identify the relationship between the corporate capital structure and the performance.From empirical analysis, we can see that asset-debt ratio of the SMEs has established the negative link between performances significantly. The company performance increased following the reduction of asset-debt ratios. Current debt ratio of the SMEs has established the negative link between performances but not significantly. Long-term debt ratio of the SMEs has established the link between performances. Based on the conclusion, we offer some concrete countermeasures and advices to refine the SMEs'capital structure.In order to improve corporate performance. |