A Research On The Financing Structure And Profitability Of The NEEQ-listed Companies

Innovative small-and-medium-sized enterprises can make the economy more dynamic and absorb employment.The National Equities Exchange and Quotations(commonly known as the "New Three Board")is an important complementary market after the Main Board and Second Board market,which is designed to help easing financing difficulty of the small-and-medium-sized enterprises.Currently,the research on the New Three Board is not sufficient.The existing research mainly focuses on institution of the New Three Board system.There is rarely research on financial growth,financing structure,and profit ability of the New-Three-Board-listed companies.Because the New-Three-Board-listed companies are mostly small-and-medium-sized companies in high-tech industries,analysis of these financing structure and financial capacity can promote the development of China's high-tech manufacturing industry.To exploring the correlation between profitability and financing structure of the New-Three-Board-listed companies not only provides reference information for optimization of these companies' financing structure,but also gives guidance for improving the market regulation efficiency.This thesis first introduces the research background and research purposes,reviews literature related to the issues,and describes three main theories.Then,this paper conducts multifaceted statistical description on the New-Three-Board-listed companies' developments during the period of 2013-2015.In order to investigate the relationship between the new three board listed company profitability and financing structure,this research selects 367 New-Three-Board-listed companies as samples for empirical analysis.Empirical analysis process includes preliminary analysis for sample characteristics of the selected indicators;the F-test and Hausman test for model selection;panel data fixed-effect regression,respectively using operating profit margin,return on equity,and return on total assets as the dependent variable.Statistical analysis results show that the current liabilities of the New-Three-Board-listed companies are above 90% and 80% of the companies are enterprises with relatively concentrated business ownership.There are high current liabilities and equity concentration problems among these companies.The empirical analysis results show that the asset-liability ratio is significantly correlated with corporate profitability indicators,where the asset-liability ratio is negatively related to the operating profit margin and return on total assets while positively related to return on equity.The results show that due to the uniqueness of the New-Three-Board-listed companies,the past theories cannot well explain the impacts of assets liabilities on profitability of these companies.In addition,this study also finds that ownership concentration the New-Three-Board-listed companies has no significant correlation between the profitability of the enterprises.Therefore,this thesis suggests that the government to develop the New-Three-Board bond market and help enterprises to improve the governance structure of creditor's rights;market regulators should improve the New-Three-Board market direct financing policies;By institutional policies,New-Three-Board companies should promote enterprise financing diversification,improve the efficiency of enterprises financing uses,and optimize enterprise equity structure.