Research On The Relationship Between Financing Preference And Performance In GEM Listed Companies

The GEM Listed Companies of China formally on board in Shenzhen in October30,2009, the first batch of28companies have listed at the same time.After severalyears of development, the total number of the GEM Listed Companies has reachedmore than three hundred. The GEM Listed Companies of our country prefer equityfinancing to debt financing, and the financing of developed capital market is just theopposite, making people to suspect whether the financing preference of the GEMListed Companies of our country to achieve the optimal. In recent years, the pace offoreign capital to speed up to enter the mainland market exacerbated domestic marketcompetition intense degree, market concentration further increased.Domesticenterprises urgently need to know correct view of oneself and financing preferences,at the same time take advantage of the capital market to expand the scale of enterprisemanagement, to grow fastly and to enhance the competitive ability of the enterprise.This paper, by combining the existing research results at home and abroad, fromseveral aspects, with convincing data, describe the relationship of financingpreference and performance of the GEM Listed Companies of our country.First of all,this paper introduces the research background and significance.The significance ofthis study lies in the GEM Listed Companies as an example, to explore therelationship of financing preference and performance of the GEM Listed Companies,and puts forward some constructive measures and suggestions. Secondly,this paperintroduces the related theory of the relationship between the financing preference andperformance of the GEM Listed Companies of our country,and carries on the analysisto financing present situation of the GEM Listed Companies of our country. Then, thispaper makes the empirical analysis of the relationship between the financingpreference and performance of the GEM Listed Companies of our country.In theempirical analysis stage, based on the financial data to the2010-2012year at theShenzhen stock exchange GEM Listed Companies as samples, making return on netassets, long-term liabilities such as index for data processing, using SPSS software tocarry on the empirical analysis. Finally, according to the results of empirical analysisconclusions, this paper provides some policy suggestions for the GEM Listed Companies of our country.The GEM Listed Companies of China opened in2009, for the study of GEM hasnot yet become the focus of scholars, according to listing Corporation financingpreference, impact on performance and countermeasure analysis gem to launch,provided a perfect idea for the analysis of the financing behavior of the growthenterprise market of listing Corporation. In this paper, the study on equity financingpreference hypothesis and corporate performance have negative relationship. Theempirical analysis conclusions are as follows: compared with the developed countries,China’s GEM Listed Companies exists the phenomenon of equity financingpreference; equity financing preference phenomenon existing in our GEM ListedCompanies has decreased, but the proportion of equity financing is still high; there isa negative relationship between the equity financing preference and firm performance.