The Determinants of Capital Structure of the SMEs: An Empirical Study of Chinese Listed Manufacturing Companies

摘要

The principal aim of this paper is to obtain the main determinants of capital structure of Small and Medium Enterprises (SMEs). The hypothesis that is tested in this paper is that the debt ratio of the firms depends upon the size, the profitability, the liquidity, the asset structure and the growth opportunities. We carry out an empirical analysis over a panel data of Chinese listed SMEs in the manufacturing industry from 2004 to 2007. The results show that the capital structure has a negative relationship with the profitability and liquidity, negative correlation with the firm size, the asset structure and growth opportunities.