Abstract
High-tech small and medium-sized enterprises (SMEs) have played an important role in promoting the development of Chinese national economy, but most of them are still facing the difficulty in financing. This paper determines the major factors affecting the financing for high-tech SMEs by using multiple linear regression (MLR) method and significance test then comes to a conclusion that enterprise scale, enterprise growth, tangible asset ratio and equity liquidity have positive relationship with the financing of high-tech SMEs while profitability, accumulation, non-debt tax shield and solvency have negative effects.
Highlights
During the continuous development of Chinese socialist market economy, small and medium enterprises are in a pivotal position in the national economy
The maximum value of variance inflation factor (VIF) is 3.42, so we conclude that there is no collinearity relationship between explanatory variables. 2.6 Result Analysis From the result of regression coefficient, enterprise scale, Enterprise potential, tangible asset ratio and equity liquidity are positively correlated with the capital structure of small and medium-sized enterprises (SMEs)
We use multiple linear regression to analyze the data of 76 listed high-tech SMEs in China, and analyze the main factors that affect their capital structure with the following results:
Summary
During the continuous development of Chinese socialist market economy, small and medium enterprises are in a pivotal position in the national economy. There exists some relatively serious information asymmetry problems between high-tech SMEs and their investors, the core value of high-tech SMEs mainly reflected on their new technology and technical R & D results, this brings the uncertainty for the future economic benefits and enterprise development. Studying the influencing factors of high-tech SMEs’ financing is of great practical meaning, this can provide a reference for investors who try to make decision on whether the enterprise is lack or over financing. It can provide some advises on high-tech SMEs’ operating and development, determining the best financing strategy according to their own situation. In this paper we will use multiple linear regression, based on the financial data of some listed high-tech SMEs in China, carried out the empirical analysis for the influencing factors to high-tech SMEs’ financing
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