Research On The Innovation Performance On Financial Evaluation Perspective Of Listed Companies On GEM

For an enterprise, innovation plays an important role in its survival and development. Especially, in the era of knowledge economy, competition among different companies is increasingly fierce. Under this situation, an enterprise must focus on innovation and rely on innovation to improve its core competitiveness. Now, China is implementing "the innovation-driven development strategy" and promoting industrial transformation and upgrading. In this sense, for an enterprise, implementing of innovation is to conform to the economic situation. As a new market, the growth enterprise market attaches great importance to an enterprise’s innovation capacity. Listed companies on GEM are a group of small and medium-size enterprise, which are active in carrying out innovation activities. Therefore, it is meaningful to study innovation activities of listed companies on GEM. After evaluating their innovation performance on financial evaluation perspective, we can explore strategies to improve their innovation performance.This paper consists of five parts. The first part of the essay is introduction. In this part, we mainly introduce the research background and significance of the essay, review the domestic and foreign scholars’ views in this field, and state research ideas, methods, innovation and shortcomings. The second part of the essay is about the definition of relevant concepts and basic theories. Firstly, on the basis of existing research results on innovation performance, we define related concepts. Then we illustrate relevant theories, including Innovation Theory, Endogenous Growth Theory, Enterprise Competence Theory, and Contingency Management Theory. The third part of the essay is about the construction of innovation performance financial evaluation system. According to the principles of selection indicators selection and evaluation methods, we construct a financial evaluation index system on innovation performance. The fourth part of the essay is about empirical analysis. In this part, after selecting sample and selecting variable indicators, we use the data envelopment analysis method and the Malmquist index method to obtain the samples values of their innovation efficiency, making it possible to evaluate their innovation performance. Results show that on the whole these samples’ innovation performance is good, but there is still room for growth. And there are large differences in the level of innovation performance in different sectors. Besides, in general the samples’innovation performance exhibits a rising trend, and the samples need to improve the efficiency of resource allocation and appropriately make technological progress to enhance innovation performance. The last part of the essay summarizes the essay’s conclusion, proposes appropriate policy recommendations, and forecasts possible future research directions.Innovations of this essay are as follows:first, the study is on the listed companies on GEM, a group of small and medium-sized enterprises; second, we use data envelopment analysis method and Malmquist index method to evaluate enterprises’ innovation performance, separately from the static and dynamic perspectives, and we analyze the results from the overall and industry levels to achieve research purposes.