Research On Financial Risk Evaluation Of Company Listed On GEM

As the corporate type of superb active and Prospect, SMEs, but are restricted by the factors such as the scale of capital, have to face financing problem. Until2009, GEM market established by the Shenzhen Stock Exchange to some extent alleviate the financing problem of these companies, also open up new investment channels for investors. But Most of the SMEs also face with status quo of weak foundation and the highly competitive environment, after listing, because of its in the growth, relatively poor operating stability, whether it is in terms of financing, or investment operations, cash flow will face greater risk. Therefore, how to objective and reasonable evaluation of the level of financial risk of companies listed on GEM, and take effective prevention and control measures, has been important problems to be solved in the current study of companies listed on GEM.The current evaluation system for financial risks are for main board listed company, but for a high-risk,high-yield, high technology, and relatively concentrated shareholding and other characteristics of companies listed on GEM, it does not apply. Therefore, combined the actual situation of the GEM, to build financial risk evaluation system of GEM-listed companies, can not only help stakeholders to objectively evaluate GEM listed company’s financial risk profile, and then make the right decisions, but also contribute to the implementation of effective regulatory control measures.By analyzing the markets and their listed companies on GEM characteristics, elaborated the objective necessity of financial risk analysis for companies listed on GEM. By extension theory as a guide, identify the companies listed on GEM’s major financial risk types. Drawing on the research results of relevant scholars in the listed companies’ financial risk assessment, combined with the actual situation of our financial risk companies listed on GEM, comparative analysis on a variety of comprehensive evaluation methods, and ultimately select catastrophe progression method constructed of GEM listed companies’ financial risk evaluation index system and measurement models. Then, taking an example of95GEM listed companies belonging to the manufacture industry, comprehensive evaluated each sample company’s financial risk profile by using GEM listed companies’financial risk evaluation system, verify the operability of the constructed evaluation system. Finally, based on the analysis of the results of the performance evaluation of sample companies, and combined with the content of the theoretical part, author puts forward some related countermeasures and suggestions.Innovation points of this article:(1)This paper analyzes the markets and their listed companies on GEM characteristics,and by extension theory as a guide, identify the companies listed on GEM’s major financial risk types, ultimately select catastrophe progression method constructed of GEM listed companies’ financial risk evaluation index system and measurement models.(2)In this paper, catastrophe progression method for sample company’s financial risk profile conducted applied research, evaluation results are analyzed to verify companies listed on GEM financial risk assessment system based on catastrophe progression method constructed in the paper with good operability.