Empirical Study On The Relationship Between Financial Leverage And Financial Performance Of Bio Pharmaceutical Listed Companies On GEM

China started the gem financing platform on October 23,2009,which was called "China's NASDAQ".As an emerging market,the gem broadens the financing channels for small and medium-sized companies in high-tech fields.Financial leverage is a risk indicator of an enterprise.Choosing the right financial leverage will increase the financial performance.Through the study of the bio pharmaceutical listed companies on GEM,the author puts forward constructive suggestions for the healthy development of such enterprises.This paper first briefly reviews the domestic and international financial performance evaluation research and its influencing factors.With the specific characteristics of China's GEM listed companies,to construct the evaluation index system to reflect the financial performance of companies listed on GEM in four aspects: corporate liquidity,operation ability,profit ability and growing ability.Secondly,obtain the financial performance score and financial leverage score of the bio pharmaceutical GEM listed companies from 2011 to 2015 with the factor analysis method.Finally,establish the multiple regression model,taking the financial performance synthetic score of selected biological pharmaceutical listed companies as explained variable,taking financial leverage as explanatory variable,taking leverage,the proportion of the top ten shareholders,net assets ratio,R & D ratio,the size of enterprises,the total number of shareholders as the control variables,analysis the correlation between these factors and the comprehensive score of financial performance with demonstration.There is little research on the impact of financial leverage on corporate financial performance at this stage.Actively exploring the impact of financial leverage on the financial performance is of practical significance to improve the corporate governance system,to supervise the operation of enterprises and to improve the performance of enterprises.