An Empirical Research About Relationship Between Ownership Structure And Growth Of GEM Listed Companies

The relationship between Ownership Structure and the firm growth is an important part of the corporate governance research. As the most significant part in the corporate governance system, ownership structure play a great role in the choice of company developing strategy as well as the company management.GEM board was established not long ago, there was less research on the relationship between ownership structure and the growth of GEM listed companies. GEM board listed companies have big differences from Main board and SME board listed companies on size, technology level and content. Therefore, the relationship between ownership structure and growth of GEM board listed companies has its own unique characteristics. Based on the above analysis, this article will in-depth study the impact of the ownership structure of GEM listed companies on the firm growth, in order to promote the healthy growth of GEM listed companies.This article is divided into six chapters as follows:Chapter1introduces the research background and research significance, and noted the framework of this article, elaborates the research methods and research innovation to pave the way for carrying out the research behind.Chapter2Literature Review. The first part reviews the growth of the company, explained the factors that affect the company’s growth; the second part reviews the relationship between ownership structure and the company’s growth.Chapter3, first described the company’s growth definition and the evaluation method, second focus on the relationship between ownership structure and the firm growth from ownership concentration,equity balance degree, equity property and the equity liquidity, finally make six assumptions.Chapter4. Empirical research design. First determine the sample selection methods and data sources; and then determine the method of this study, using principal component analysis to select eight financial indicators to measure the growth.Finally, define the explanatory variables and control variables and determine the regression model.Chapter5, taking59GEM listed companies as samples,use its2009to2010financial reports data. In this chapter, we will test the relationship between ownership structure and the firm growth from ownership concentration,equity balance degree, equity property and the equity liquidity. We are taking descriptive statistical analysis, correlation analysis and multiple linear regression analysis.Chapter6Conclusion. We find there are certain correlation relations between GEM Companies ownership structure and the growth of the company. Shareholding ratio of the top five and the proportion of outstanding shares have a significant positive correlation relationship with the growth of GEM listed companies. But the second to the tenth largest shareholding ratio shows a significant negative correlation relationship.Finally, according to the above analysis, we get several important conclusions and then give three advices to help the companies listed on GEM board to growth healthily.