The Research On The Impact Factors Of Gem-listed Companies' Growth From Financial Viewpoint

On October 30, 2009, the first 28 companies went public in the GEM, which means that the GEM appears in the mainland over a long-term deliberation and preparation. GEM-listed companies are in leading position among small and medium enterprises and they have good growth potential and development prospects. Therefore, the study on the impact factors of the company's growth, on the one hand, can provide some theoretical and data support for the follow-up studies on the GEM. On the other hand, it can also provide reference to other GEM-listed companies. So it has a certain theoretical and practical significance.The object of the study is 50 GEM-listed companies before the end of January 2010. We studied the impact factors of GEM-listed companies' growth based on the financial perspective, using a method of combination of theoretical analysis and empirical tests. Full-text is divided into six chapters. Firstly, it introduced the background and significance of this research, research methods, innovative point, limitations and carried out a review of relevant literature; Secondly, it gave a brief overview of GEM and 50 GEM-listed companies; Thirdly, it gave definition of the company's growth and descript the general situation of 50 GEM-listed companies; Fourthly, it reviewed classical theory about impact factors of the growth of an enterprise, such as the growth theory based on economies of scale, relationship between firm size and enterprise growth theory, life-cycle theory, enterprise endogenous growth theory and we used these as theoretical foundation of the empirical research; Fifthly, we did empirical test using correlation analysis and factor analysis; Finally, it made recommendations to the GEM-listed companies and pointed out the deficiencies of this study and future research directions. Through theoretical and empirical analysis, we discovered profits and anti-risk ability factor, solvency factor, R&D and management cost factor of a company will significantly impact a GEM-listed companies' growth, while the cost control factor, operating capacity factor, asset size are not significant impact factors. This result will help us to understand the impact factors of GEM-listed companies' growth, and provide reference for following GEM-listed companies' growth and development.