Research On The Relationships Between Capital Structure And Corporate Performance In SMES

With the rapid development of Chinese economy, SMEs get a rich source of funds by expanding financing channels, and promote the development of Chinese capital market. Meanwhile, Manufacturing is the pillar industry of China’s national economy, is the leading China’s economic growth,and become the key areas of reform and innovation.However, manufacturing SMEs are still facing difficulties in financing and irrational capital structure. Finding the factors that affect the performance of the manufacturing SME from the capital structure, and improving and adjusting the capital structure is helpful to improve the performance of SMEs in the manufacturing. Therefore, we choose manufacturing SMEs as the research object by using spss software. We explore the impact of manufacturing SMEs in the capital structure of the company’s performance through descriptive statistical analysis, factor analysis, correlation analysis and multiple regression analysis and then propose constructive meaningful recommendations to promote the sustainable and healthy development of SMEs in the manufacturing sector.We reviews the research status and theory on capital reserve and company performance, and then choose 418 listed companies in SMEs manufacturing industry in 2011-2013 as the research object. We collectfinancial data reflecting the capital structure and the performance of the company from the GTA database and Juchao information website.Empirical Analysis Conclusion: manufacturing SMEs’ profitability indicators overall downward trend nearly three years, but the decline is not large, still has a strong profitability overall and the performance is impressive;Current ratio, quick ratio, cash ratio which is at a high level,with good solvency, are declining Operational capacity index changed little, inventory turnover, liquidity and asset turnover total asset turnover are faster; Manufacturing SMEs in total assets grew rapidly, have strong development capacity; Asset-liability ratio is on the rise obviously, but the overall average is low, manufacturing small and medium-sized enterprise capital structure remains to be improved; Current liabilities ratio is on the decline, but the current high debt ratio, debt structure is not balanced;Long-term capital debt ratio increased year by year, but the proportion of long-term capital debt ratio is very small, remains to be improved. The final regression analysis: Asset-liability ratio and corporate performance show U, the current debt ratio is negatively related with corporate performance, and long-term debt to capitalization ratio was positively correlated with corporate performance.Finally, combined with the macro-environment and the current situation of SMEs according to the research conclusion, and then propose practical recommendations from standardized financing environment,maintain the flexibility of corporate capital structure, increasing the proportion of long-term debt and improving the level of corporate performance.