Abstract

The level of financial risk has great significance to the sound operation of enterprises and the healthy development of economics. Based on the data from 2009 to 2011 of 205 small and medium manufacturing enterprises listed before 2009, this study studies the impact of ownership structure on the level of financial risk, especially the relationship between financial risk to firms on small board and one-share dominance as well as the family characteristics of family business. The empirical result shows that: the proportion of tradable shares and the degree of equity balance are negatively correlated with the financial risk level; while the ownership concentration is positively correlated with the financial risk level; and the proportion of state-owned shares or legal person shares and CEO share-holding rate have no significant effect on the financial risk level of SME (small and medium enterprises).

Keywords:

Financial risk, ownership structure, SME,

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Competing interests

The authors have no competing interests.

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The authors have no competing interests.