| On 30th Oct 2009, The GEM, which had been prepared for long time, formally started trading with anticipations. On that day,28 companies were listed on the market. It was a milestone in China’s stock market. The goal of Gem is to provide financing method for middle and small business that is developing and promising in high-technology filed. It leaves great space for high-speed development for the enterprise. Due to the characteristics such as high-growth, GEM drew much attention by Chinese investigators. It only takes 5 years to such an amazing way. Up to 31th Dec 2014, the number of companies listed on GEM is as many as 406, with capital stock of 107.81 billion, total value of 2087.068 billion RMB and 41.26 times of PE ratio. Currently, the investigations aimed at the relationship between ownership concentration and performance point out that they are highly correlated. However, on GEM, there are insufficient researches on relationship between ownership concentration and performance. The listed companies must optimize its ownership concentration if they want to perform better, gain more profit and promote the value. Therefore, the research on the relation between ownership concentration and performance in GEM is quite meaningful both on theory and practice. This article chooses the listed companies on GEM as research objects and perform empirical studies focused on the relation between ownership concentration and performance. During the study of my paper, I have firstly searched and read lots of related materials thus had a deep understanding of the relation between ownership concentration and the corporation business performance. Then, I have collected many financial and ownership concentration data of the companies listed on GEM. After the rough sorting of these data with Excel, I have objectively analyzed the status quo of the ownership concentration and corporation business performance of the GEM market and found out that the ownership of the listed companies on GEM is relatively concentrated and there exists the polarization of performance of the branch companies. Lastly, I have selected 153 companies as samples and made an empirical study on the data during 2010 to 2013. By the factorial analysis with SPSS, I have listed out the comprehensive index on behalf of the performance of listed companies on GEM from the financial data after the rough sorting. Testing the relevance of the ownership concentration and company performance, get the conclusion and put forward some advice on the policy accordingly.After the empirical test, there are 4 points I’ve got listed below. Firstly, the polarization of performance of the listed companies on GEM is distinct which shows the difference of management and development of branch companies. Secondly, the ownership is highly centralized on the top 5 owners and relatively focused on the biggest one with the trend of the ownership concentration to descend year by year. Thirdly, there is negative correlation between corporation performance and ownership concentration which means the concentration of ownership deters the development of performance of company management. Fourthly, there is irrelevance between the check-and-balance ownership structure and performance of the listed companies on GEM. Therefore, the check-and-balance ownership structure cannot promote the company performance. Thus, I have given the following suggestions according to the conclusions above. Firstly, the government should perfect the relevant laws and regulations and also reinforce the supervision on GEM. Secondly, the ownership of listed companies on GEM should be decentralized and the power of the owner strictly supervised and limited. Lastly, the check-and-balance ownership structure should be improved and the institutional investors encouraged. |
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