Interactive Inter-temporal Impact Study Between SMEs’ Growth And Debt Structure

Growth is the core of the development of SMEs, the role of SMEs in the development of our national economy is more and more important.However, since the 2008 financial crisis, the complexity of the environment for SME development increased, the uncertainty of sustainable growth of SMEs increased. Among them, the financing problem is the bottleneck to restrict the development of SMEs, while financing way of SMEs mainly based debt financing. So this paper studies the relationship between the growth of SMEs and debt structure,which is particularly necessary. Current research on both mostly based on one-way static study, and this article will explore the dynamic mutual influence relationship on the growth of SMEs and debt structure.By combining with features of SMEs and using factor analysis, This paper makes a more reasonable measure to the composite index of growth.based on business growth theory, financial life-cycle theory, capital structure theory and signaling theory, summarizing the previous theoretical and empirical study. this paper examine the dynamic effects between three levels of debt structure and the growth of SMEs. First of all,Grainger causality test based on panel data verified the relationship between three levels of debt structure and growth of SMEs is the reciprocal causation. Then, by the use of GMM method, dynamic regression verified the concrete mutual relationship between the debt structure of the different lag period and enterprise growth of the different lag period. Regression results show that: asset liability ratio and the growth of SMEs negatively affect each other. short term liabilities ratio and the growth of SMEs negatively affect each other. long-term debtratio and the growth of SMEs positively affect each other. bank loans ratio and the growth of SMEs negatively affect each other. commercial credit and the growth of SMEs the positively affect each other. In addition.a significant degree of influence of different lag is also different. Only the current short-term debt ratio and commercial credit ratio have a greater effect on the current growth than the previous short-term debt ratio and commercial credit ratio and the rest are that the effects of the previous independent variables on the dependent variable is more significant over the period independent variables. Explain the role of debt financing in the corporate governance is difficult to play in our country. The debt ratio structure of different period is out of balance, which restrict the exertion of the effect of debt financing. Bank financing channels need to be optimized, so that it can better play the role of service.At last, according to the empirical conclusion respectively, from the aspects of enterprises, banks, government and market this paper put forward feasible suggestions, in order to better solve the financing difficulties of SMEs in China, the signal transmission delay and the positive governance effect of debt structure, promote capital market resources’ effective allocation and the healthy and stable development of the whole national economy...