The Relationship Of Growth With Stock Market Returns In The Small And Medium-sized Information Technology Industry To Be Listed Based On The Dynamic Panel Data Model

Enterprise's growth potential, is that the enterprise has the unceasing excavation and using the resources to realize continually the latent value productivity, is that the development anticipation of the enterprise that people will make resting on this enterprise's the existing development condition and other internal and external objective factors. The superintendents, the investor and so on of the enterprise are caring about enterprise's growth potential. Only investing the good growth of the enterprises, people can obtain the enough much stock repayment. At the same time, the expanding good enterprise can attract the investment and cause the enterprise to obtain the fund which in the growth needs, and realize the positive cycle development.The objects of our study are the small and medium-sized information technology enterprises to be listed. Based on the former literature framework, we renewed and consummated growth measurable targets of the small and medium-sized information technology enterprises to be listed. The scale of the enterprise being the controllable variables, proposed the research hypothesis and relative models between growth and stock return of the small and medium-sized enterprises to be listed. First, we examine the rationality test of measuring data to use the dynamic panel data model with F-test and Hausman test. Then we have drawn the conclusion with dynamic panel data model and the principal components analysis. The findings indicated that there are inner relations among the measurable growth of the small and medium-sized information technology enterprises to be listed, and there are the remarkable inverse correlation between enterprise's profit level and the operation target, the enterprise must give up some turnovers if they want higher profit level. In certain time (1998-2005), the research indicated that profit, development and sinking ability of the measurable growth target in the small and medium-sized information technology enterprises all separately has the remarkable influence on the long-term stock return, but the relations between operation and long-term stock return are complex, their linear relations are not remarkable. The findings also indicated that the scale of the enterprise have no remarkable compacts on the model. Finally we measured the integrated growth target of the small and medium-sized information technology enterprises to be listed using the principal components analytic method, and establishes the relationships between the integrated target and stock return. The findings indicated that the stronger are the integrated growth target of the small and medium-sized information technology enterprises to be listed, the higher are the long-term stock return.