Research On The Relationship Between SME Board Of Listed Companies’ Growth And Capital Structure

With the development of China’s socialist market economy, the status of smalland medium enterprises in China’s national economy is increasingly significant. Thusthe growth of the SMEs will become the focus of many theorists. In2011, the StateCouncil promulgated ǎComments on further support the healthy development ofsmall and micro enterprisesǐ, We can easily find the government provides policysupports to the financing problems of SMEs. Domestic and foreign scholars havebeen abundant research about the growth of SMEs, and the factors that may affect thecapital structure. However, there are few studies about the relation between thegrowth of SMEs and capital structure. No doubt that corporate growth is closelyrelated to the choice of capital structure.Based on domestic and international studies on the growth of SME and thefactors that may affect the capital structure, this paper divides the growth of SME intopast growth and future growth, and selects listed companies of manufacturing industryby using the data from2009-2011. And divides the company’s capital structure intotwo aspects: overall debt levels and debt maturity structure. Then this paper doesempirical analysis in the growth of the enterprise, overall debt levels and debtmaturity structure. This paper also uses the four control variables: enterprises scale,unguaranteed residual value of assets, non-debt tax shield and profitability to doregression analysis.The empirical results show that past growth in SMEs has positive correlationwith overall debt levels, but has no correlation with debt maturity structure. Futuregrowth in SMEs has significant positive correlation with overall debt levels, and haspositive correlation with debt maturity structure. Scale enterprises and unguaranteedresidual value of assets have positive correlation with overall debt levels. Non-debttax shield and profitability have negative correlation with overall debt levels.Unguaranteed residual values of assets and non-debt tax shield have negativecorrelation with debt maturity structure. Corporate profitability has significant positive correlation with debt maturity structure. enterprises scale has no correlationwith debt maturity structure.Through the empirical results it is found that the higher the past growth of thecompany is, the higher the overall debt levels the company chooses. And the higherthe future growth of the company is, the lower the debt levels the company chooses.This result agrees with the agency theory. At the same time, the past growth of theenterprise has no impact on the proportion of long-term and short-term borrowings ofthe enterprise. But, if the higher the future growth is, the more short-term debt theenterprise takes. Finally, this paper does the summary and puts forward the policyproposals: in order to seek the SMEs’ own optimal capital structure freely, our countryshould make the capital markets more perfectly and more financing channels shouldbe provided.