Research On The Relationship Between Listed Company’s Growth Of SME Board And Financial Structure

With the continuous development of economy, people’s concerns for business is no longer just stay on profitability, but begin to pay more and more attention to the growth of enterprises. The growth of enterprise is an ability to increase enterprise value continuously, through optimization of the internal and external efficiency of resource allocation to achieve scale growth and benefit enhancement in continuous operation. High-growth companies play an important role in promoting the development macroeconomic and improvement of the capital market. But the sustained and healthy growth of company can’t depart from the support of funds. Corporate financing structure is to show the capital composition and proportion relationship between the money rising from various channels. Financing issue is one of the core content of modern corporate finance and is also crucial for the development of enterprises. So for company in a high growth stage, how to use limited resources to optimize its financing structure, in order to achieve sustainable growth is particularly important. Compared with the enterprise in other sectors, most of China’s SME board listed enterprises have high growth. Since most of them are the small and medium-sized enterprises, they are difficult to get financial support from financial institutions and are more serious shortage of funds, so the financing problem has been widespread attention. Based on these considerations, this paper studies the relationship between the growth of SME board listed enterprises and financing structure.Scholars at home and abroad has conducted abundant research of the relationship between the growth of SME board listed enterprises and financing structure, most of them think that growth is influence the financing structure is an important factor. However, since the SME board is emerging, the development of the capital market is not perfect and mature. It needs to be verified that if foreign research conclusions are applicable to the SME board. Besides, the study of the relationship can further guide enterprises in different growth stage to make better financing decisions, in order to realize healthy development of enterprises. Therefore, from the view of theoretical and practical point, the research of the relationship between growth and financing structure has important significance.This paper adopted the method of combining the theoretical research and empirical research. In addition to describing agency cost theory, signaling theory and strategic corporate finance theory, the author carried on the empirical research based on the analysis of the status of the SME board listed companies.In the empirical part, this paper chooses the data of SME board listed companies between2009-2011as research sample, using factor analysis method to build a comprehensive growth evaluation index, and then use regression analysis to examine the relationship of the growth of enterprises and the level of debt, and the relationship of growth and debt maturity structure. Among them, the building of growth evaluation index is through factor analysis of six indicators, including the growth rate of total assets, capital expenditure growth rate of main business revenue growth, profit growth rate of main business unit assets, unit operating profit growth assets and Tobin’s Q, and then extract the main factor. The empirical results show that there is significant negative correlation between levels of debt and enterprise’s (?)wth. The higher the growth of the enterprise, its debt level is lower. This result is consistent with the hypothesis of this paper and theoretical analysis. For the Control variables, the enterprise scale, asset collateral value has significant positive correlation with debt levels, and others have significantly negative correlation. While the regression analysis results of growth and debt maturity structure showed a negative correlation, but not, significantly. This result shows that higher growth companies are not obvious in tending to use short-term debt. This is not consistent with this hypothesis. The author of this paper argues that this is because that the development of China’s bond market is not perfect, especially the debt financing channel for small and medium-sized enterprise not unobstructed, then companies can not completely select financing way according to their own need. Finally, this paper puts forward related suggestions from the aspects of financial market and enterprise itself, and then summarizes the limitations of this article and prospects (?)ruture.