Financing Structure and Innovation Performance: Based on the Data of Enterprises from SMEs Board

In China, due to the imperfect market mechanism, SMEs' innovation faces many uncertainties. So whether its financing structure is reasonable and the way to finance is effective are very important to innovation performance. In this survey, based on panel data of SMEs board listed company from 2004 to 2013, we focus on the importance of financing structure, and in particular on financial leverage, ownership type diversity and ownership constraint. Using principal-agency theory and resource-dependency theory (RDT), we find that financial leverage has a negative effect on innovation performance and that ownership constraint has the same effect, but ownership type diversity positively affects innovation performance of companies.