The capital structure of
small and medium-sized enterprises is closely related to enterprise financing.
At present, the capital structure of small and medium-sized enterprises in China
is unreasonable. There are disadvantages such as low proportion of internal
financing, single external financing channels and excessive short-term
liabilities. The theory of enterprise capital structure studies how the
enterprise arranges its
capital structure in its development or contraction, which means how the
enterprises determine the ratio of their own capital, equity capital and debt
capital in order to maximize their market value. In other words, how to find the optimal capital structure of the
enterprise is the central task of
the theory. This paper starts from the economic environment and characteristics
of small and medium-sized enterprises, discusses the
internal and external factors affecting the capital structure of small and
enterprises and puts forward the countermeasures and suggestions for optimizing capital structure of
small and medium-sized enterprises.
Jordanb, M. (2011) The Determinants of Capital Structure of Jordanian Mining and Extraction Industries: Empirical Evidence. European Journal of Economics, Finance and Administrative Sciences Issue, 29.