Growth Valuation Model And Empirical Research On High-Tech Listed Company

The growth of high-tech company is very important for the developmentof economy and S&T of one nation. Research on high-tech firm growth hasbeen focus of firm theory recently. There are so many factors that affect thefirm growth. Researchers don't agree each other because they think it fromdifferent views and aspects. This paper defines gowth as an ability that makefirm grows. The inner factor is more important and is the foucus of thishigh-tech firm growth through research.Almost each inner factor can affect firm growth to spme extent. Thispaper reviews the related research and find some more important of them.Then build a vaultion model of high-tech company growth. After that, dealtwith the selected factors through factor analysis and get four main factorsrepresenting four key ability affecting high-tech company. The four abilitiesare expanding ability, stability, gain-achieving ability and technologyinnovation ability. The paper also gets the growth score with them. In thispaper, 80 high-tech listed companies are selected as an example of thisindustry of China. The following research is based on their related data.As the conculsion, this paper finds that more than half of China high-techlisted companies get minus growth scores. It means they have weak growthability. Within the 36 companies getting positive growth scores, a large partof them have positive scores in technology innovation. Compute the five kindsof scores of the 80 companies in 2004 and compare them with the scores of2001-2003. We can find that those companies with positive scores intechnology innovation have greater probability to have good growth behaviorin the following year. It means technology innovation is more important to thehigh-tech listed company of China.