A Research On The Relation Of Capital Structure And Growth Of GEM Listed Companies

Since the first batch of 28 companies was listed in 2009,the GEM market has experienced a rapid development.By December 2015,a total of 492 companies were listed and the GEM has become an important part of the capital market.Researches on the relation between growth and capital structure have theoretical and practical significance to promoting the optimization of enterprise capital structure and healthy development.However,few domestic researches have ever been done on this topic.An empirical study on capital structure and growth of the listed companies is carried out in this research,which involves the GEM companies in 2012-2014 as samples.With statistical software and factor analysis method,a comprehensive evaluation index of growth is generated.Meanwhile,the asset liability ratio is used as main indexes to reflect the capital structure,and the correlation and linear regression methods are employed to do the empirical research,which comes to the following results and conclusions: 1)There is a positive correlation between the capital structure and the growth of China's GEM listed companies.At an overall low level of debt ratio,they have a significant positive correlation,namely the higher the proportion of debt is,the better the company's growth appears.2)There is a significant positive correlation between growth and the companies scale,net interest rate,return on equity,total assets turnover rate and period costs,which indicates that GEM companies can promote their growth by expanding their scale,improving profitability and operational capacity.In view of the above conclusions,countermeasures are suggested as follows: first,optimize the capital structure and select the appropriate capital structure;second,improve the growth of enterprise as well as its profitability and innovation ability;third,promote the development of debt financing market and expand financing channels;and finally,improve the securities market legal system and further protect the interests of investors.