Empirical Research On Evaluation Of Growth Of Companies Listed On GEM

In the era of knowledge economy, the economic growth is more based on innovations of enterprises. As the carrier of innovation, pioneering enterprises play a pivotal role in the development of the national economy. However, the development of pioneering enterprises is faced with many problems, of which the most prominent is funds shortage and financing difficulties. The launch of the GEM has, to some extent, alleviated this problem by providing a direct financing channel for pioneering enterprises and reducing the huge financial risks brought by indirect financing, and thus is conducive to the development and growth of pioneering enterprises. From the overall characteristics of the GEM listed companies, we can see that the Growth Enterprise Market (GEM) is mainly aimed at high-tech enterprises characterized by high growth and has a large development potential. This is just in line with the market positioning of the GEM and also provides source of power for promoting and perfecting the development of GEM.The era of knowledge economy, the economic growth from enterprise innovation, entrepreneurial enterprises as a carrier of innovation, development of the national economy has a pivotal role. However, the development of entrepreneurial enterprises facing many problems, the most prominent of which is the shortage of funds, financing difficulties, the launch of the GEM to some extent of this problem have been alleviated, provides a direct financing channels for start-ups, reduced corporate indirect financing with a huge financial risk, and is conducive to the development and growth of start-ups. The overall characteristics of the GEM listed companies, we can see that the GEM mainly for high-growth, high-tech enterprises, and has a large potential for development, which are in line with the market positioning of the GEM, to further promote the perfection of the GEM development of the source of power.Business growth is the soul of a start-up company, is the internal driving force in promoting the development of the GEM, and is an important guarantee for the sustainable development of the national economy. Meanwhile, it is also an important indicator in measuring the operating status and development prospects of listed companies. The business growth of listed companies is reflected in their own accumulating and developing process, during which such features should be taken into consideration:the national policy support for and the expansibility of the industry, the product prospects, the expansion of company size year by year, the constant growth of operating efficiency. In China, there emerged a large number of start-ups with development potential. The business growths of vary from each other. Thus, problems such as whether the listed companies valuation levels are reasonable or not, if high premiums exist, if too high Tobin Q values can reflect the enterprise values and reflect the business growth of enterprises, are probed into in this thesis. Under such circumstances, if the investors are still able to share the business results of the companies listed on GEM, still able to obtain stable performance returns, it appears to be particularly important and of great practical significance to evaluate the growth of the companies listed on GEM.After substantial reading and thorough analysis of extensive literature, the author had an in-depth understanding of business growth theories. By studying the publicly available data in the financial statements of the companies listed on GEM, and after drawing on domestic and foreign cutting-edge achievements about the business growth of listed companies, the author systematically analyzed the conditions, characteristics and influencing factors of the companies listed on GEM with the guidance of statistical theories and methods, and further explores the mechanism of action of various factors on the business growth of companies listed on GEM. A research method combing canonical analysis and empirical analysis is applied in this thesis. This thesis evaluates and analyzes the business growth of listed companies through factor analysis, and comes to the conclusion that there exist relatively great differences among China’s companies listed on GEM. Through regression analysis of the Tobin Q values, the scores of the main factors, and the turnover rate of the enterprises, the conclusion is initially reached that the high Tobin Q values of China’s companies listed on GEM does not adequately reflect the business growth of enterprises, and that high premium phenomena brought by speculative activities do exist among the companies listed on GEM. Finally, the author gives further suggestions as to how to improve the business growth of our nation’s companies listed on GEM and how to strengthen the market supervision.