Study On The Delisting Risk Warning GEM Listing Corporation

Since the establishment of GEM despite the good performance overall, but there are still individual companies reported losses. Although GEM gathered a large number of high-tech enterprises, but high-tech enterprises are not highly grow businesses. Some GEM listed companies really poor, so that GEM has become a place of misappropriating cash, executives highlighted the phenomenon also reflects the reduction of public financing for the new economy has not only create value for shareholders, the original intention of the GEM is not fully reflected in the establishment. To curb speculation, the Commission on March 21 this year, released a revised draft of the GEM Rules, emphasizing the GEM will strictly enforce the delisting system of listed companies delisting once the trigger condition, the firm, fast delisting, not allow backdoor listing, the market is expected to clear and protect the legitimate rights and interests of investors. However, in practice, there is still a lack of operational rules, delisting risk is still in control of the state after the event, and the lack of warning before the risk. Therefore, building model GEM delisting risk warning, strengthen research on the GEM delisting warning of risk, proactive and effective governance measures for delisting risk, positive prevention, prevention and control, renders the existence of listed companies delisting risk and inch exit the stock market, thus ensuring the normal operation of the securities market.In this paper, the GEM listed company as the research object, based on the relevant literature at home and abroad to fully understand, based on the theoretical basis of the relevant issues of the sort of related concepts were defined, including the definition of the basic concepts of risk delisting warning the basic definition of the concept, and then describes the status of companies listed on GEM and GEM delisting risk factors, and through the introduction of the GEM number of listed companies, the industry and the development of the situation, to show the GEM listed companies in recent years, to the overall situation, and then from profitability, growth, operating capabilities, four solvency perspective, the GEM listed company’s operating performance with a brief description of the situation, the analysis of the relevant factors that may lead to delisting risk analysis GEM listed company’s operating performance will help investors determine the GEM listed companies delisting risk, thus timely warning. In the empirical study using statistical software SPSS17.0 principal component analysis and logistic regression models, select ROE, net profit margin, net profit rate of total assets, net profit growth, total revenue growth, should accounts receivable turnover ratio, fixed asset turnover, total asset turnover ratio, equity ratio, debt ratio, current ratio, quick ratio twelve indicators, through the use of factor analysis extracted four common factors to establish the logistic regression model Empirical analysis shows that profitability and growth ability of GEM listed companies delisting risk warning the strongest, the P value obtained through into the data, in order for two consecutive years in the listed companies delisting edge of early warning. Warning results for GEM listed company’s operating performance and model display cases, increase the risk of delisting warning from awareness to ensure that companies listed on GEM file steady growth, strengthen the profitability of companies listed on GEM, the establishment of the delisting risk warning mechanism and other aspects of GEM listed companies delisting risk warning concrete proposals.