Research On Risk Prediction Model Of The GEM Listed Company

Establishment of GEM will help improve the industrial structure upgrading and independent innovation capability to solve the high technology content of part of the growth of a strong SME financing channels for a single ubiquitous and funding shortages. Since the market for high-tech enterprises or enterprises with high-growth companies, their development is primarily dependent on the core technology is mature, develop, depending on the technical backbone of human capital. Characteristics and development stages of the enterprise sector together determine the value of the enterprise depends on technological innovation and high return on investment. Precisely because of this, the GEM companies have high growth with high risk sexual partners, such as the operation is unstable, the shares issued at a premium, the operating time is short and so the reality is the cause of all the risks formation. Based on the above, there is a great risk of GEM, will not only increase the risk of losses to investors, but also make the company itself in financial trouble, the impact of the stock market’s stability and order. Therefore, the company’s risk measure, to provide GEM risk indicator, the risk strangled in the cradle is imperative. This selection of risk through a combination of feature selection GEM number indicating the risk of risk indicators, using principal component analysis, streamline indicators, and then build Logistic risk prediction model, and thus the risk of GEM listed companies play a predictive role risk identification, in order to manage risks.