Empirical Research On Relationship Of Financing Structure And Operational Performance Of GEM Enterprise

The GEM was established by the Chinese government for the innovative high-techenterprises which cannot be listed in stock markets of Shanghai and Shenzhen. The growthenterprise market is an important financing channel for the innovative high-tech enterprises.The GEM can effectively solve the innovative entrepreneurial financing needs. It willprovide the help for the economic development of our country. Small and medium-sizedhigh-tech enterprises have advanced technology and management concept. They can bringnew ideas for the whole industry. But in the early stages of development, small andmedium-sized high-tech enterprises are facing the dilemma of lack of funds and the systemis not perfect. And their risk is relatively large; it is difficult for them to meet theconditions of bank credit. The GEM market can meet the capital requirements of small andmedium-sized enterprises.Firstly, in the literature review, we collecting, sorting and analysis two question: thetheory of capital structure and the relationship between company performance andfinancing structure. On the basis of previous research achievements, we try to summarizethe factors of capital structure theory and company performance. Secondly, analyze therelationship between the financing policy and company performance. On this basis, wetake the relationship between financing structure and company performance as the mainline, then we select metric variables which can value financing structure and companyperformance.Also, we select the exogenous variables of our model. Finally, we establishthe interaction of simultaneous equations between financing policy and firm performance.We select data sources about2012from the financial statements of the companies in GEM.