The Research On Influence Factors To The Growth Of Companies Listed On GEM

GEM is an important part of China’s capital market. To some extent, its birth and development has solved the financing difficulties and promoted the rapid growth of the high-growth small and medium-sized enterprises. It also promotes the development of national economy. Compared with the motherboard market, the GEM pays more attention to the sustained and stable development instead of the short-term performance of the listed companies.Companies listed on GEM face many problems in the process of growing. The core of these problems is their growth. We need to study the influence factors to the growth of companies listed on GEM.On one hand,it can provide a basis for promoting the healthy development of the GEM and improving growth environment of the companies.On the other hand,it has important significance in finding methods to improve the growth of companies listed on GEM.First of all,this thesis defines the concepts of the GEM, companies listed on GEM, the growth of enterprises and the growth of companies listed on GEM. It summarizes the relevant theories about the influence factors to the growth of the enterprises as well. It also qualitatively analyzes the main factors affecting the growth of the enterprises,including external factors and internal factors,and briefly introduces the methods of the empirical research. Secondly, it analyzes the internal and external factors affecting the growth of the companies listed on GEM according to the characteristics of the listed companies. It elects the relevant indicators to measure the growth of companies listed on GEM and its influence factors based on the theoretical analysis and the selection principle. Thirdly,it presents 8 relevant research hypothesis and picks 28 indicators from nine aspects based on the qualitative analysis. This thesis selects 88 Chinese companies listed on GEM before January 1, 2011 as samples.It uses factors analysis method and builds a multiple linear regression model to study a variety of different influence factors that affecting the growth of companies listed on GEM. Then it explains the results of empirical research. Finally, it put forward some suggestions according to the results of empirical research for the listed companies, the investors and the government. The results of this study shows that industry characteristics, profitability, asset management capabilities and company size of the companies listed on GEM have a significant positive effect on their growth. Solvency of the companies listed on GEM has a significant negative effect on their growth.Cost control ability, cash acquisition ability and innovation ability of the companies listed on GEM have no significant effect on their growth.