The Empirical Study On China's GEM To The Economic Contribution

Growth Enterprises Market(GEM in short)is an important part of China's capital market.As it plays a vital role in the direct financing for the small and medium-sized enterprises,GEM has been put in a significant position since the very beginning of its founding,and has taken on the historic mission of promoting renovation and growth of China' enterprises as well as facilitating the strategic transformation and upgrade of the industry.However,GEM has kept emerging three-high issues in the actual running,namely,high p/e ratio,high issue price and high fund-raising,together with a series of problems produced by listed companies such as falling on its list day,bad performance,and cash out by top management,etc,All these not only discourage the confidence of investors,but also make people question the original intention of establishing the GEM,which has led people to think the inner relationship between GEM and its social economy in depth.Therefore,this paper attempts to study GEM's contribution to the economic growth from a new perspective and with a new empirical analysis method,so as to conduct a comprehensive research on the relationship between China's GEM and macro economy,and give a scientific evaluation to GEM's contribution to the economic growth.The paper takes GEM's capital market function as the entry point,points out that the Central Government is pushing forward the supply-side structural reform,therefore we should vigorously promote the technological innovation of enterprises,especially those small and medium-sized enterprises,in order to improve the quantity and quality of economic growth.GEM,as the main capital market for financing the small and medium-sized enterprises,it is necessary to study GEM's economic contribution versus its economic growth to the technological innovation of small and medium-sized enterprises,so as to further improve the market mechanism of GEM,and ultimately accelerate economic growth.And this is the main goal of the study.The paper consists of eight chapters,and the main structure and contents are listed as below,First of all,this paper sorts out systematically about the research background and current status both at home and abroad on the development of GEM and economic growth,conducts the framework and structure of the paper in detail,ascertains the main ideas and innovative points of the research,and determines the research direction,along with its theoretical and practical significance as well,which all serve as a prelude of this paper.Secondly,the following chapter mainly focuses on theoretical studies.In an attempt to further study the inner mechanism between GEM and economic growth,this paper expounds on the theories concerning GEM and economic growth,analyzes the economic growth systematically,and then makes in-depth research on the interactive mechanism between stock market and economic growth,and later studies deeply on the conduction mechanism between GEM and economy.In the end of this part,the paper proposes creatively that the relationship between GEM and economic growth should be studied from the perspective of innovation economy.Thirdly,before getting into the empirical study,the paper discusses its development and operation status of China's GEM,and analyses the macroeconomic status quo at present.Based on the above studies,the paper makes the normative analysis of the relationship between GEM and economic growth.The fourth is the core part,i.e.the relationship between China' GEM and economic growth is tested by the empirical analysis.For a better demonstration and measurement of the relationship between financial development and economic growth in the subsequent chapters,a total of three methods for measurement analysis commonly used now have been analyzed and compared in the paper,i.e.Cross Section Data analysis,Time Series Data analysis and Panel Data analysis.As a result,the Panel Data analysis has been selected as the main analytical approach combined creatively with the microcosmic research method based on the data collected from enterprises,thus laying a sound theoretical foundation for the following empirical study.Based on the research and analysis,the paper analyzes the two major aspects of GEM and its listed companies from the macro and micro perspectives,that is,selecting the GEM scale,market flow and its volatility as variables at the macro level,while choosing the comprehensive evaluation index system of the listed companies based on financial indicators which include its development ability,debt paying ability,profitability and operation ability as variables at the micro level.By means of using the vector auto-regression&error correction model,model of factor analysis and other analytic methods,the paper analyzes the GEM's influence on economic growth.Given the above analysis,we find out that there is an obviously causal relationship between GEM and economic growth,in order to achieve the purpose of promoting economic growth.The paper lastly analyzes the overseas GEM.Through learning from the overseas GEM mistakes and its successful experience as well,it is therefore highly proposed that we should further improve the system construction of China's GEM,and promote a healthy and stable GEM in our country,so as to achieve the goal of boosting our country's economic growth.