Growth and capital structure—Evidence from panel data of listed firms on SMEs board

摘要

Using the panel data of listed firms on SMEs board in the period of 2005–2009, this paper investigates the relation between growth and capital structure of SMEs in China. With the capital structure measured simultaneously by the total debt-to-asset ratio(TD/A) and long term debt-to-asset ratio(LD/A), and growth measured by the market-to-book asset ratio(M/BA), our results show that there are both negative relations between capital structure and growth of SMEs using TD/A and LD/A to measure capital structure respectively.