The Study On Capital Allocation Efficiency And The Influence Factors Of Small And Medium-Sized Enterprises In The County Level

With the rapid development of market economy, the development situation of SMEs is good, the number of SMEs in all enterprises account for more than 95%. The SMEs are the important part of the county economy, which absorb rural labor, increase farmers’ income, promote the adjustment of industrial structure and promote rural economic and social development. Compared with large companies, there are many disadvantages existing in the SMEs, such as the lack of talent, capital and technical support, its anti-risk ability is poor, backward management, innovation ability insufficiency, the comprehensive competition ability is not strong and the position in the market is weak. There are blind investment of different level or idle funds existing in the SMEs in the county level. The lack efficiency of capital allocation may result in the damage to the value of the SMEs, and hurt the interests of investors at the same time. Based on this background, the paper is based on the theory which is related to capital allocation efficiency, using the sampling survey data of SMEs in the county level in Jiangsu province. This paper used the empirical analysis of capital allocation efficiency and its influencing factors, so as to provide corresponding basis and related policy to the SMEs in the county level.This paper firstly combed literature about capital allocation efficiency at home and abroad, and carries on the review of existing research, then summarized the theory on capital allocation efficiency, the development of county economy. On this basis, this article studies the efficiency of capital allocation, and analyzes the related measure method, such as the production function method, the input and output method, marginal tobin Q value method and the model of Richardson. After the comparison of the measure method, Richardson model is chosen as the research method in this paper. Secondly, the article analyzes the development of SMEs in Jiangsu province, and further studies the present situation of capital allocation, then measures the efficiency of capital allocation of SMEs, and uses the Richardson model to test the new investment in the enterprises, it is concluded that that the new investment of the enterprises its related to the enterprises’s size, asset-liability ratio significantly. The larger the size is,the fewer the new investment is. The higher the asset-liability ratio is, the less investment in fixed assets. The low efficiency of capital allocation exists in the SMEs in the county level. The paper further analyzes the influence factors of the capital allocation efficiency, it is concluded that the non-efficiency of capital allocation is related significantly to the entrepreneurial talents, R&D founds, area and number of employees.Finally, according to the results of the study, this paper puts forward some Suggestions: first, cultivating excellent entrepreneur, entrepreneurship is the most important factor of the development of SMEs; Second, encouraging the SMEs develop steadily in the process of operation, applying incentive mechanism to increase the staff’s professional skills training; third, encouraging the county SMEs to speed up the technological progress, improve the technology content of products and services, and speed up the upgrading of industrial structure.