Study On The Choice Of Financing Structure Of SMEs In Manufacturing Industry

Studying the options on financing structure of medium-sized and small enterprises inmanufacturing industry, exploring its basement for option and its underlying factors andfinding out the optimized path for the financing structure are very essential to encourage andimprove the development of medium-sized and small enterprises in traditional pillarindustries, to improve the vitality of enterprises, and to stabilize the economic growth andpromote the employment. This thesis selected forty manufacturing small and medium-sizedenterprises listed before2005(including2005) as the samples. In measure of financingstructure, this article selects three variables: asset-liability ratio, long-term debt ratio andshort-term debt ratio as the dependent variable, in order have a whole grasp on the financialstructure from these three dimensions.During the process of analyzing, it is firstly found that medium-sized and smallenterprises have endogenous financing preference and short-term debt financing preference insuch industry by statistical description. In addition, it is proved that the optimal asset-liabilityratio of medium-sized and small enterprises in manufacturing industry is about55%. Thirdly,this thesis collected the data of micro and macro financial data in the recent decade,intertwined its annual report, prospectus and its relevant finance site. From macro and microtwo aspects in manufacturing, this thesis tries to analyze the influencing factors which effectthe options of the small and medium-sized enterprise financing structure The thesis tries toprobe into the influencing factors which effect on medium-sized and small enterprises inmanufacturing industry, from the micro and macro perspectives. Multiple linear regressionand panel model analysis method were adopted in this thesis as the studying methods. Thisthesis treats asset-liability ratio with three dimensions as the dependent variable, using theabove two methods of analysis to set up three model to study the financing preference and itsinfluencing factors of the small and medium-sized enterprise on manufacturing industry.Studying from the macro perspective, three conclusions have been concluded: firstly,operational economic status has a positive relation with the three dimensions (short-term debtratio, long-term debt ratio, asset-liability ratio); secondly, the rate and income tax only presentthe significant correlation with the short-term debt ratio and asset-liability ratio. The former relation is negative, the latter relation is positive. Thirdly, the inflation rate has insignificanteffect on these three kinds of debt ratio. From the view of micro aspects, the scale of company,profitability, asset collateral value, operational risk and debate paying ability were verified inthese three dimensions, and the sigh of coefficient is the same. What’s more, the scale ofcompany, profitability, asset collateral value has the positive relation with the financingstructure, while the operational risk and the debate paying ability have the negative relationwith the financing structure. However, growth and non-debt tax shield have not gone throughthe significant test. The running ability presents the positive relation with the short-term debtratio, while presents the negative relation with long-term debt ratio, and has insignificanteffect on the total debt ratio. All in all, the two factors: economic operational status and ratehave the biggest effect on financial structure of medium-sized and small enterprises inmanufacturing industry. The micro factors include Asset collateral value and profitability. Inaddition, it was found that the value of these medium-sized and small enterprises’ initial debtconcluded from the panel model analysis is negativeIn view of the above analysis results, this thesis puts forward appropriately raise the levelof small and medium-sized enterprise debt, further improve the debt interior structure, set up aspecial small and medium-sized enterprise financial services institutions, broaden thefinancing channels, and further perfect the new SanBan markets and corporate bond markets,which can provide long-term stable funding for small and medium-sized enterprises, reducetheir risk of the financial crisis, and eventually make small and medium-sized enterprisesacquire the capital they need, and realize the optimum financing structure, and then injected asteady stream of energy for the whole national economy.