Research On The Growth Evaluation Of The Small And Medium Sized Listed Companies In China

SMEs play an increasingly important role in the process of rapid economic development in China, which increases economic contribution level every year. Therefore, the growth of SMEs has been pay attention increasingly, that’s not only related to the survival of SMEs themselves, but also to economic development. Since government resources are limited, the Government should choose the promising SMEs. To a large number of small and medium enterprises from China’s support in selecting the appropriate object, the growth of small and medium enterprises need to conduct a scientific evaluation. Evaluation of growth of SMEs in China is actually a capacity of insight into the development of SMEs, reflecting the overall growth status of SMEs in China’s future growth and business potential. Therefore, the growth evaluation of the small and medium sized listed companies in China has important theoretical and practical significance.The current Listed small and medium enterprise growth evaluation index system is including financial indicators and general indicators. The financial indicators are composed of the growth of ability, profitability and asset management capabilities; the general indicators are composed of market expectations and business scale. In this paper, based on the theory of firm growth, the theory of life cycle, the theory of economies of scale which associated with the growth of evaluation theory, and learning about the determinants of enterprise growth, the paper makes the following improvements for the current evaluation index system in combination with the market changes in the external environment. First, add the ability of cash flow targets in the financial indicators; Second, add the diversity targets in the general indicators. Then, calculate the growth of the sample companies, determine the growth capacity of small and medium sized listed companies, and rank the growth capacity, by using the catastrophe progression method. After two non-parametric test and validation test, the paper verifies the rationality and usefulness of the reconstructed growth evaluation index system. Finally, for the reconstructed growth valuation index system of the small and medium sized listed companies, the paper provides the corresponding policy recommendations.