The Dynamic Characteristics Of The SMEs’ Risk Of Debt

In China, the continuous improvement of the capital market for minor enterprisesdevelopment pad for a solid foundation. However, in the capital during the uncertaintyshould pay attention to, with increasing uncertainty, corporate financing, financing,investment activity will produce incalculable risks. There are various different risks inproduction and living, companies need to identify various forms of risk, and differentrisks to take a different approach to management. Analysis and management of risk isoften faced with the problem of production and operation of minor enterprises, which isthe core of the problem, which exists in the enterprise value creation among, ifmanagement has been, you can get the benefits expected.In the country’s economic development and functioning among enterprises, thoughfor the most solid and the most basic strength, but it is the lifeblood of the nationaleconomy, corporate debt risk will be further expanded to risk industries and even in thewhole country. So companies choose the right debt financing is vital. In addition, theestablishment of appropriate risk warning mechanism is also very important. Companiesneed to be vigilant in the production process, using scientific methods to predict thelikelihood of risk occurrence, take appropriate preventive measures based on thedifferent characteristics of risk for the risk strangle in the cradle or minimize it, thisenterprise further development of great significance.Based on existing debt risk characteristics of theoretical research methods andconclusions, in order to determine the roe enterprises, the total assets of profitability,return on invested capital, debt ratio, current ratio, debt ratio of liquidity, non-currentliabilities ratio of the main analysis object, joined the year dummy variables for paneldata of china’s minor enterprise board listed companies in the2005-2013regressionanalysis to explore the manifestation of the dynamic characteristics of debt and riskfactors. Empirical results show that the structure of corporate debt increase or decreasein revenue associated with the enterprise does not increase or decrease with roe ofrevenue, profitability and total assets invested significantly related to return on capital;current ratio, debt ratio, liquidity debt ratio, non-current liabilities ratio and yearsignificantly correlated, indicating that the article uses lag analysis of debt riskcharacteristics of effective meaning; asset-liability ratio and the delay a total assetsprofit margin was significantly negatively correlated with lagged a return on net assets rate presents a strong positive correlation, indicating that total liabilities of enterprisesand lagged profits significantly negatively correlated significantly positively correlatedwith lagged net assets, reflecting the business strategy of minor enterprises is relativelyconservative, relatively stable equity ratio debt less risk. The ratio of current liabilitiesNon-current liabilities ratio were significantly positively correlated with lagged ratio ofcurrent liabilities and non-current debt ratio, and the second phase lag current liabilitiesand non-current debt ratio ratio was significantly negatively correlated. Descriptioncorporate short-term liquidity and long-term solvency than the strong, less debt risk. Inaddition, the ratio of current liabilities with some significant positive correlation Year,when the2008financial crisis, minor enterprises choose to increase the ratio of currentliabilities, because of the lower cost of financing short-term liabilities, debt risks facedby enterprises is relatively small, in2010and2011in a period of economic recovery,minor enterprises seek more stable and orderly development, so the same tend toshort-term liabilities. Non-current liabilities ratio and a more significant part of the yearshowing a negative correlation, further illustrates the businesses are more inclined toshort-term financing.Therefore, this paper presents recommendations based on research findings,companies need to improve their own internal financing mechanism, using its ownfunds to the maximum extent, reduce debt risks. Meanwhile, the development of sciencedebt financing plan is also very necessary, to do with the debt to be scientific andrational, the debt must be planning. In addition, the risk early warning system should beestablished to ensure that corporate debt risk is minimized state.