An Empirical Research of the Debt Source Structure and Operating Performance of the Small and Medium-Sized Enterprises of Chemical Industry in China

Abstract:

The paper researches the relationship between the operating performance and debt source structure of small and medium-sized enterprises of chemical industry (SMECI) to select the 50 samples of chemical industry from the small board and gem of china stock market. The findings are that it is a negative relationship between the financial liability and business performance for the SMECI. But it is a positive relationship between the operating liability and the business performance. Then, by comparing to the small and medium-sized enterprise of service industries, it is worse performance for the SMECI. The reason is that there may be lower operating leverage and higher financial leverage for the SMECI. So the paper proposes that the managers of the SMECI should be reduce the scale of financial liabilities as possible, and strengthening the debt of operating, in order to improve the operating performance. Keywords: Debt sources structure; Operating leverage; Financial leverage; Operating performance; Small and medium-sized enterprises

• Periodical: Advanced Materials Research (Volumes 971-973)
• Pages: 2462-2465
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.971-973.2462
• Online since: June 2014
• Authors: Jian Jun Li*
• Keywords: Debt Sources Structure, Financial Leverage, Medium-Sized Enterprise (SME), Operating Leverage, Operating Performance, Small Enterprises

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