Research On Effect Of China SMEs Risk-taking On Enterprise Efficiency

In2004, in order to broaden the financing channels and promote the healthydevelopment of small and medium enterprises, China established the small and mediumenterprise board in the Shenzhen Stock Exchange, which speed up the development ofenterprises. Facing the complex economic environment, in order to enhance the corecompetitiveness of small and medium enterprises, we must improve the efficiency ofenterprises. Research on the efficiency of enterprises has been the focus of scholars.Predecessors have done a lot of work about enterprises efficiency measure andempirical study of enterprises efficiency influencing factors. But article from theempirical point of view to analyze the relationship between risk-taking and theefficiency of small and medium enterprises is relatively less.How’s the efficiency of small and medium enterprises in our country. whether therisk-taking can make a difference on the efficiency of enterprises or what kind of effectit has been made? This is the topic of the article.This paper analyzed this theme both bytheoretical and empirical study. In the theoretical fields, This paper studied the problemwhich is based on the existing related research. In the empirical research fields, Firstly,using the super efficiency DEA model to measure the efficiency of81small andmedium enterprises during2006-2013. Then taking advantage of the Tobit model tostudy the affect of risk-taking on the efficiency of small and medium enterprises whenwe introduced the enterprise scale, profitability, earnings quality and others as controlvariables and added risk-taking as the explanatory variables. Finally, We offered someproposals according to the empirical results.The principal conclusions of the efficiency analysis are as follows. Firstly, thispaper found that although the efficiency has changed when we compared of the sameenterprise’s efficiency in different periods, it showed a strong "inertia". Secondly, thispaper found that although the efficiency has showed a strong "inertia" when wecompared of the different enterprise’s efficiency, there is a big difference amongdifferent enterprises. This suggests that the efficiency depends largely on its ownmanagement. The enterprises should enhance efficiency from their own point of view.The principal conclusions of the regression results are as follows. Firstly,risk-taking have significant positive effect on efficiency. Secondly,“Conservative management” can be bad for the efficiency of enterprises. Thirdly, in other aspects,enterprise scale, profitability, earnings quality, debt paying ability, operating ability andenterprise growth potential also have positive effects on efficiency.This paper offered some proposals according to the empirical results. Firstly,strengthen the risk assessment and against the "conservative management". Themanagers should be a moderate increase of risk-taking to enhance the efficiency on thebasis of rational person assume. Secondly, an approach that “small but group” can beadopted when it occured diseconomies of scale. Thirdly, we should pay attention to therole of entrepreneur to solve the problem of low efficiency which due to “conservativemanagement”. Finally, to further strengthen the construction of small and medium sizedenterprises board.