The Relationship Between Capital Structure,Ownership Structure And Corporate Performance

SMEs are the foundation of the development of the national economy, playing an irreplaceable role in the booming economy, increasing employment and promoting innovation. Our country has attached importance to the development of SMEs. On September23th,2011, Ministry of Industry and Information Technology released the twelfth five-year plan for the growth of SMEs. Enabling the development of SMEs has become one of the important policies and the works of our government. While the life of SMEs, compared to large and medium-sized enterprises, are generally shorter, there extists many reasons. Difficulties in financing and the irrational capital structure are the reasons that we can not be ignored. In the context of China’s special economic system, the access to debt financing for SMEs is very difficult. And with the reform of non-tradable shares completed, the ownership structure plays a prominent role in corporate governance. So seeking for a rational capital structure and optimizing the ownership structure will have a significant impact on long-term development of SMEs.In terms of the scale and nature of capital, companies with different growth levels demand differently. So this text,from a perspective based on the company at different growth, investigates the relationship between capital structure, ownership structure and corporate performance.Research Methods of this paper is a combination of theoretical research method and empirical research method. Study sample are companies listed on SME board up to2007.It uses principal factor analysis to evaluate the growth from2009to2010of the sample companies. At last I divide the sample companies into two groups according to the scores. And I select2009cross-sectional data as a sample data to confirm the relationship between capital structure, ownership structure and corporate performance in different growth companies. This article includes the following five main research parts: The first part of the Introduction, introduces the topics of the background, significance, and related literature review and Innovation of this paper.The second part is definition and the relevant theory, mainly to define the relevant concepts and the relevant theory of the relationship between financial structure and corporate performance.The third part is to evaluate the growth of the companies listed on SME board, mainly to define the concept of the growth, introduce the existing research about the methods of business growth at home and abroad. put forward the method of evaluate the growth of the companies listed on SME board.The fourth part is the empirical study, mainly to include hypothesis, sample selection, variable setting model design and the descriptive analysis and empirical results analysis for the two samples.The fifth part is test results and suggestions, mainly to introduce the conclusion of this study and suggestions for conclusions and point out the deficiency of this study.The empirical results show that for the companies with different growths, the impact of capital structure and ownership structure on firm performance is different. In terms of capital structure, capital structure has a negative impact on corporate performance, especially for companies with low growth. In terms of ownership structure, in companies with high growth, the relationship between the proportion of the largest shareholders and corporate performance is inverted "U" shape; while in companies with low growth, the relationship between the proportion of the largest shareholders and corporate performance is "U" shape. State-owned shares have negative effect on corporate performance, especially for companies with high growth. The rate of the shares of institutional investors is positively correlated with corporate performance, especially for companies with high growth. Managerial ownership will improve the company’s performance in companies with high growth, while in companies with low growth, the regression results show a negative correlation, but not apparently.Finally, according to the empirical analysis and empirical results, put forward counter measures and suggestions on capital structure and ownership structure.