Journal of Business & Economic Policy

The Effects of the Capital Structure in Performance: Empirical Study on Manufacturing Smes of México
Héctor Abraham Cortés Palacios, Elena Patricia Mojica Carrillo, Gonzalo Maldonado Guzmán

Abstract
The small and medium-sized enterprises (SMEs) generally present capital structures poorly planned, and appeal to financial sources both internal and external that while allow them to operate, often neither represent the best available options nor the most appropriate for maximizing their economic performances. The objective of this empirical study is to determine the effects of the capital structure in the performance of the SMEs, specifically; the work was done with a sample of 221 manufacturing SMEs located in Aguascalientes State in Mexico. The obtained results through the empirical testing of a structural equation modeling (SEM) provide empirical evidence that the internal financing sources influence significantly and positively the performance. Similarly, it was found that the external sources of financing have a positive influence, but not significantly in performance, which draws attention to the importance of these companies carefully plan their capital structure, giving preference to the internal financing sources.

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