Research On The Relationship Between Ownership Structures And Growth Of GEM Listed Companies

Since established in 2009,which lasted nearly eight years,the GEM has achieved rapid development.The original intention of establishing the GEM market is to provide financing platform for small and medium-sized enterprises,and the GEM gradually become a gathering place for small and medium-sized high-tech enterprises.As an important part of the capital market,the GEM market has a great significance to improve China’s capital market.It can be seen from the rapid growth of the GEM market both in terms of financing scale,and in the circulation market value,its development ability is particularly prominent and growth performance is better.The establishment of the GEM market has promoted the rapid development of small and medium-sized high-tech enterprises,improved the structure of the capital market and the liquidity of the capital.At the same time,the growth of the GEM market has also been widespread concern.How to maintain high growth in the fiercely competitive market environment is still a major problem faced by GEM listed companies.As the research object of this paper,the growth of the company is affected by many factors,and the ownership structure is one of the factors.From the perspective of corporate governance,this paper explores how to improve the growth of GEM listed companies by optimizing the ownership structure.Firstly,this paper reviews the domestic and foreign literature on the relationship between ownership structure and growth,and reviews the theory of enterprise growth from three different perspectives,which are the scale of the economic dimension,the internal resource dimension and the life cycle dimension.It also explains how the ownership structure to influence the efficiency of resource allocation,and affect the growth ultimately through the interaction between the mechanisms.Secondly,this paper analyzes the development status of China’s GEM market from the number of companies in the GEM market,the total share capital,the total market value and the price earnings ratio.Through the comparative analysis of difference of average price earnings ratio between the GEM and the main board of the Shenzhen market,and the distribution of the GEM market in different industries,the characteristics of the GEM market is analyzed.Then,it select the GEM listed companies financial reporting data of 2013-2015 three years,using factor analysis to measure the growth of the company.Finally,taking into account the presence of restricted shares in the GEM listed companies in 2012,which have a greater impact on equity liquidity.Therefore,this paper chooses the sample firm’s 2015 financial reporting data to study the relationship between ownership structure and growth from four aspects: the equity attributes,the degree of equity checks and balances,the ownership concentration and the equity liquidity.The study found that: In GEM listed companies,the proportion of state-owned shares and growth is negatively correlated,but there is a positive correlation between the proportion of managerial ownership and growth,we can find that reduction of state-owned shares and increase in managerial ownership are conducive to increase the growth.What’s more,there is a positive correlation between equity balance degree and growth,and the checks and balances for the largest shareholder which from the second to the tenth largest shareholder has much more influence on the growth than the second to the fifth largest shareholder.The ownership concentration is negatively correlated with growth,equity concentration degree is higher,which may increase the risk of the controlling shareholders "tunneling",the performance of growth will poorer.There is a positive correlation between equity liquidity and growth;the greater the proportion of shares in circulation,the risk of company by low-cost acquisition will be larger,prompting managers to operate the company better to improve the growth.In addition,based on the results of empirical analysis,this paper puts forward some targeted countermeasures and suggestions on how to optimize the ownership structure to improve the growth of GEM listed companies,and it provides a reference for the healthy growth of the GEM market.