Influence of SME Equity Structure on SME Performance

Abstract:

Based on samples of manufacturing enterprises of small and medium sized enterprises(SME) on board before 2007, the relationship was explored between economic value added(EVA) and equity property, ownership concentration and equity balance degree of enterprises in growth stage and mature stage. The empirical results of multiply linear regression model show that there is a negative correlation between the proportion of state owned shares and enterprises’ value; tradable shares rates have little effect on the enterprise’s value; it is more complex to determine the effect of the degree of ownership concentration and equity balance degree on enterprise’s value. But generally speaking, higher degree of ownership concentration in growth stage and higher degree of equity balance in maturity stage contribute positively to enterprise’s performance.