Study On The Growth Enterprise Market Of Listing Corporation Financing Institutions Influence On Its Performance

As an emerging capital market, growth enterprise market (GEM) does notreceive much attention from the domestic economists at the moment, whose studyfocuses are on main board market as well as small and medium-sized board market.However, currently, growth enterprises market is undergoing a rapid development.Its scale grows from28public companies in the beginning stage to more than300public companies at present, which cover80cities of30provinces. Being animportant component of establishing multi-layer capital market, the main objectiveof GEM is to provide the capital support to the small and medium sized high-techcompanies. China is now undertaking a very important economic transformation andsmall and medium sized high-tech companies play a significant role in developmentof China’s national economy. Nevertheless, objectively speaking, the current capitalstructure of China is not perfect, the induction mechanism is not sound and there isno capital withdrawal mechanism. These problems make it difficult for the growingsmall and medium sized high-tech companies to raise fund. Therefore, it is of greatsignificance to study the financing structure of listed companies on GEM. The studyis also very meaningful to promote the further development of GEM and facilitatethe improvement of the sound capital market system.The paper chooses the financing structure of listed companies on GEM and itsinfluence on companies’ performance as the research subject. First, the paperintroduces the research background, objective and its significance. At the same time,the introductory part also presents the methodology and summaries the theories andliterature review concerning financing structure of listed companies on GEM and itsinfluence on companies’ performance according to time sequence. Then, based onthe characteristics of international listed companies on GEM, the paper conducts anobjective analysis over the Chinese listed companies on GEM, defines the financingstructure and introduces some practices and theories of financing and performanceChina’s listed companies on GEM. In the following, through factor analysis, thepaper demonstrates the overall performance of China’s listed companies. AdoptingSPSS18.0, the study chooses355listed companies on GEM from2009to2012asthe research samples so as to prove the correlation between the financing structureand company’s performance. Finally, on the basis of the study results, some personalsuggestions are proposed so that these suggestions can provide some practical help to solve the problem of difficult financing and optimal structure of listed companieson GEM.