Empirical Research On Determinants Of Capital Structure Of Listed Companies Of Small And Medium Enterprise Board

The small and medium enterprises (SMEs) played a very important role in fostering social stability, constructing the main market and promoting our national economic development. As to the SMEs’ relatively smaller scale, unsure income, and lack of the mortgaged property,which put the SMEs in a higher finance risk level,their own financing structures have been influenced.In2004,the establishment of the SME Board in Shenzhen Stock Exchange provided a convenient financing channel for the listed SMEs, which is the premise for SMEs to construct a reasonable capital structure.This thesis focuses on the major affecting factors of capital structure of SME Board listed companies.In the thesis,firstly,the historical development of capital structure theories and determinants of capital structure theories is reviewed so as to provide basic theory foundations upon which the following studies will be based.Secondly, by introducing the characteristics of SMEs Board and the SME Board listed companies’ overall characteristic,theoretical discussions are presented to figure out preliminarily, at industrial and corporate level, the major affecting factors of capital structure of SME Board listed companies.In the part of empirical study, firstly it made a descriptive analysis on the related variables which selected by statistics measure.Thereafter,it processed a regression analysis on the relationship of related variables by using OLS method.Through the empirical research, this article draws some conclusions:The leverage of China’s SME Board listed companies positively relates to corporate growth,scale and the proportion of collateral assets;and negatively relates to corporate profit earning,uniqueness of product and non-debt tax shields(NDT).The study also finds out that the proportion of collateral assets is the most influential factor among all for SME Board listed companies.Then,some possible explanations are given.At the end of the thesis, suggestions at industrial,corporate and institutional level are presented to improve the capital structure of SME Board listed companies.