Discussion on the Influencing Factors of Capital Structure Optimization of Smes
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Capital structure refers to the relationship between the composition ratio of all liabilities and owner's equity of an enterprise, or the ratio composition between long-term liabilities and owner's equity. Capital structure will infect the choice of enterprise financing behavior, will act on the profitability of of the enterprise and the owner's equity, and will have an indelible impact on the terminal value of the enterprise. It is one of the important indicators to evaluate the overall situation of the enterprise. In order to obtain the best capital structure, the ratio of liabilities to shareholders' equity must be balanced among internal and external factors. Therefore, we must first explore the main factors affecting it, in order to optimize the capital structure can be combined with the actual situation to do its best. This paper analyzes the influencing factors of the capital structure of small and medium-sized enterprises, and lays the foundation for improving the capital structure of small and medium-sized enterprises.
Capital structure, Shareholder equity, Small and medium-sized enterprises