Study On SMEs Capital Structure Optimization

Small and medium-sized enterprise, as an important force in China’s national economyand social development, plays an indispensable role in increasing employment, activating themarket, balancing the revenue, stabilizing the society and promoting the national economystructure adjustment, has become a driving force in market economy. But there are manyproblems to restrict Small and medium-sized enterprises (SMEs) rapid and healthydevelopment, such as inefficient operation, low credit rating, lack of funds, irrational capitalstructure, inefficient financing and so on. Irrational capital structure affects firm performance,corporate governance, risk-resisting ability and effect, it becomes one of the biggestobstacles to restrict SMEs development. Economy, finance, industry, size, liquidity and so onimpact the capital structure of SMEs. SMEs in different industries are different incompetition, lifecycle, barriers, profitability, these result significant differences in SMEs ofdifferent industries.This paper bases on capital structure theory, domestic and foreign capital structureresearches, analyzes the existing problems and determinants of the capital structure in SMEs.Aiming at optimizing SMEs capital structure on the basis of determinants, the paper usesdescriptive statistics, correlation analysis, ANOVA, regression analysis to study the effects ofindustry factors on the capital structure of SMEs and the effects of size, liquidity,profitability factors on the capital structure of different industries. Ultimately, through theoptimization of SMEs capital structure, helping SMEs to seek more effective financingchannels, improving financial management, strengthening SMEs market competitiveness andpromoting SMEs sustained and efficient development.