Empirical Analysis Of The Evaluation Of China’ GEM Listed Companies

Company growth has been a hot issue by scholars, including growth influencing factors analysis and evaluation of the growth. GEM market is highly anticipated, the growth of listed companies is a hot topic. This paper take the growth of companies listed in GEM as the starting point, firstly take a systematic review of related paper, then select146sample companies listed in2009and2010, select eight financial indicators from the six areas of profitability, expansion capacity, solvency, cash strength, management level and ability to innovate, using factor analysis method to extract three main growth factors which were named as factor of the level of fees, cash and expansion of capacity factor, factor of solvency, establish of the evaluation of the growth model, using this model calculated growth score and ranking. Then compare top ten and down ten companies’ performance, revealing that top ten performance is significantly better than down ten, thus proving the accuracy the established model. Finally, divide sample companies into three groups of high-growth, middle-growth, low-growth, establish simple liner regression models. The results showed that the level of fees is negatively related with growth in all groups, cash and solvency factor is positive related with growth in all groups, cash and solvency factor positive related with growth in low-growth group, but not significant in high-growth and middle-growth groups.