Research On The Effect Of The New Third Board Listing Firm's Financing Structure On Profitability

In the composition of China's market economy,small and medium-sized enterprises have long occupied an important position.The development of small and medium-sized enterprises are important force to promote the development of China's market economy.However,for a long time,due to theirs unique financing channels and limited funding sources,the financing problem has always hampered the development of small and medium-sized enterprises.In order to solve the shortage of funds for small and medium-sized enterprises and ensure the healthy and stable development for them,the New Third Board came into being.The establishment of the New Third Board and the timely expansion of capacity are an important step in the creation of a multi-tiered capital market in China.This diversified financing method and preferential policies have enabled the New Third Board Market to make up for the lack of multi-level capital markets in China and provide a vast financing platform for small and medium-sized enterprises.In addition,the continuous improvement of the New Third Board has expanded the proportion of direct financing for small and medium-sized enterprises,freed up private investment channels,expanded capital market coverage,and improved the ability of capital markets to serve the real economy.As of December 2017,11630 companies have already listed the new three boards.The different financing sources and their structural proportions of the new 3rd-listed companies will have an important impact on the capital structure of the company,and will also bring different financial and operational risks,which will in turn affect profitability.Therefore,from the perspective of the long-term development of small and medium-sized enterprises,exploring the impact of corporate financing structure on the profitability of enterprises should be the focus of internal corporate governance and the main purpose of this study.This article first introduces the research background and significance of the topic.Then,based on a comprehensive review of the relevant literature on financing structure at home and abroad,this paper divides the theoretical and empirical studies into the impact of the new three board financing structure on profitability.relationship.In the theoretical part,the classic theory about the financing structure and profitability and the relationship between the theories were first elaborated.Then the three different financing methods of intrinsic financing,equity financing and debt financing were separately elaborated.In empirical research,this paper firstly analyzes the status quo of the new three-plate market and analyzes the current status of its financing structure and profitability.Then,it uses the selected 226 new-three listed companies as samples for empirical analysis.The process of empirical analysis includes the descriptive statistics of the data characteristics of the selected indicators,the model selection through F-test and Hausmann test,and the construction of econometric model for panel data regression analysis.The empirical results show that:(1)The intrinsic financing rate of the new 3rd-listed companies has a significant positive impact on their profitability;(2)The equity concentration degree of the new 3rd-listed companies has a significant positive correlation with their profitability;(3)Assets The debt ratio is negatively correlated with the return on total assets and positively correlated with the return on net assets.(4)The two control variables of the scale and growth ability of the new three boards are also related to the profitability of the company.Finally,based on the empirical research conclusions,a reasonable analysis was carried out.In combination with the actual characteristics,it proposed to strengthen the use and supervision of internal funds of enterprises,optimize the equity structure of listed companies,increase investment in technological innovation,increase the growth of enterprises,and give play to financial institutions.The role of governance,improve the market supervision mechanism and other targeted recommendations.