Factor Analysis Of The Effect Of Equity Financing For SMES In China

SMEs are an important part of a country’s economy, has an indispensable role for the development of a country’s economy. SMEs in China not only promote China’s economy continues to grow, but also absorbed a large number of surplus labor in the urbanization process in China, if SMEs can not be in sustained and healthy development, not only will affect China’s economic development, but also will affect our social stability, but the problem of the funding gap in the development of SMEs in China and enterprises, has seriously hindered the development of SMEs in China. With the method of combining theoretical and empirical problem in the financing of SMEs in China analysis, it’s hoped to provide a reference to solve the financing of SMEs.Firstly, there is a review of modern corporate finance theory, and on the basis of modern corporate finance theory, it’s gave a theoretical analysis of the financing situation of SMEs in China. SMEs in China are mostly labor-intensive enterprise, which has a limited ability to respond to market risk in an increasingly competitive market situation, the urgent need to enhance their competitiveness, which led to large-scale needs of the SME funding, while financing capacity of SMEs themselves are relatively weak, further resulting in a funding gap in the process of enterprise development. Under the premise of society as a whole the supply of funds does not occur a large-scale changes to improve the efficiency of financing, equity financing effect is the most realistic way to solve the difficult problem of financing of SMEs.Theoretical analysis to small and medium enterprises listed in the small board for the study, using panel regression methods, the use of the EViews measurement software, the equity ratio as a measure of the effect of the indicators of corporate equity financing, the target company’s equity ratio the enterprise’s net profit margin, return on net assets, total assets, the effective tax rate, the proportion of intangible assets to total assets and the operating costs accounted for the proportion of revenue return, after a de facto fixed effects regression and test of significance. The regression equation to adjust after the reunification of the adjusted regression equation can be found in the equity ratio to various interpretations and characterization of the internal characteristics of the relationship between the variables.In the final analysis on the current situation of SMEs in China and the actual data to make empirical analysis, put forward policy recommendations to improve the effect of equity financing in China.