Study On The Profitability Evaluation Of GEM

In 2009, with the opening of the China's Growth Enterprise Market, GEM will provide a shortcut for the financing of SMEs. GEM will focus on the growth and innovation of the companies, but also has higher risk, so people on the profitability of companies listed on GEM ability to hold very high expectations.Listed companies will direct affect the profitability of the decision-making and confidence to the investors, but also reflects the comprehensive ability of the listed companies. The profit from the GEM factors will be affecting the ability of departure, selecting the GEM evaluation of the profitability of listed companies and impact indicators.Because of the market profitability of listed companies are subject to many factors, in order to find the main factors affect the profitability, we used factor analysis in the paper method. Factor analysis and principal component analysis is a useful multivariate statistical method, the main purpose of factor analysis of several factors with less most of the information reflects the original data. By factor analysis we found a measure of the profitability of companies listed on GEM of the major components, and then rotate through the factors to establish the profitability of listed companies GEM comprehensive evaluation model. By factor analysis, the GEM listed companies to evaluate the overall profitability and avoid to the limitations of a single index evaluation, to facilitate investors to better decision-making. In this paper, multiple linear regression analysis method was profitable in-depth study to analyze the different variables on overall profitability of the company, GEM listed companies to seek profitability factors. GEM of different variables on the degree of influence profitability is inconsistent. In order to avoid the interaction between variables, regression coefficients we resignificant test.Through regression analysis, we have established a non-standardized regression model; we can see each factor on the profitability of companies listed on GEM degree of influence.Finally, put forward their views and look forward to improve profitability of the GEM .