Empirical Study On Capital Structure On Sme Based On The Dynamic Adjustment Model

One of the core content, namely capital structure optimization of the capital structure, their actual capital structure by itself due to the environment and many other factors affect deviate, then the business will be gradually to optimal recapitalization, while adjusting costs businesses can quickly lead to the unconditional presence to optimum approach, the actual value will fluctuate around the optimum form a dynamic adjustment process. Our special conditions make our capital structure more prominent the need for dynamic adjustment.This paper on China’s small plates listed company’s capital structure and capital structure adjustment factors speed factors detailed qualitative analysis. In this new perspective of small plates listed companies starting to build dynamic adjustment reasonable capital structure model, the use of small plates listed on the Shenzhen Stock Exchange company panel data, empirical analysis of the dynamic model using nonlinear least-squares method and the Gauss-Seidel iteration. The empirical results indicate that the dynamic adjustment of the capital structure theory helps to explain my small board of listed company capital structure, which provides a certain amount of complement and support the existing theories. Small board of listed companies’ capital structure is a dynamic process of adjustment and the adjustment in different sectors at different times were different speeds.In this paper, the conclusion in favor of small and medium enterprise board a reasonable choice of financing were financial intermediation, while making the cost of capital has been effectively controlled, and thus enhance corporate value and reduce financial risk; help improve the profitability of small and medium enterprise board their assets, management level; of establish and improve the system also has a certain influence and reference value.