Research On The Relationship Between Financial Capabilities And The Core Competitiveness Of Enterprises Listed On GEM

On October30,2009, the first batch of28enterprises listed on china’s GEM. This means that the china’s construction of a multi-level capital market to a new level, and high-tech SMEs "Chinese NASDAQ" officially open. The most of small and medium-sized enterprises listed on china’s GEM are in growth, the company scale are small and founded soon, therefore, the company structures are relatively simple, the development of business are concentrated, the abilities to withstand external risk are weak. Due to focus on the investment of product and technology, they have certain levels of core-competence; however, they did not realize the importance of financial ability. The increase of capital is testing the enterprise’s ability of financial management, the financial structure, financial personnel quality, etc. As a result of financial strategic positioning directly determining the overall resource allocation order, work efficiency and enterprise benefit, the GEM enterprise development strategies can not continue to implement without a strong financial capability. Furthermore, in the fierce market competition, enterprises would be plunged into financial crisis and finally out of the market. Therefore, this research on the relationship between financial capabilities and the core competitiveness of enterprises listed on GEM is important to the strategic development of enterprises listed on GEM.Firstly, this research reviews the academic research about financial capabilities and the core competitiveness of enterprises. Secondly, it uses Principal component analysis Method to establish a comprehensive evaluative model, and analyses the listed computer-application services company’s the four aspects of financial capacity (Profitability, operational capacity, solvency and growth Capacity) quantitatively. Thirdly, through controlling the factors such as size of assets, it establishes the multiple linear regression models from the four part of corporate core-competitiveness (the marketing capability, technology innovation ability, Human resources, management ability). The empirical results show that, through improving the factors of the core competitive, financial capabilities of the enterprises listed on GEM will be well...