The Effect Of Gem Listed Company's Ownership Concentration On The Performance

The GEM market in china shows his first appearance in October 2009,Which is the another indispensable force of China's capital market after Motherboard market and small board market,brewing for ten years,and finally being across the obstacles,boarding the history stage.On the one hand,for some of the innovative small and medium-sized enterprises which have financing difficulties originally,the emergence of the GEM makes their financing channels have been a certain degree of expansion;On the other hand,for other investors in the capital market,the GEM also further increased the investment channels of these investors,in particular,having promoting the flow of capital markets.China's GEM market which is called China's NASDAQ reduces the small and medium-sized high-tech enterprises IPO threshold,but also promotes China's technological innovation.Up to March.2017,the total number of listed companies on the GEM has reached 603,and the total issued share capital were 267.272 billion shares,likewise,the outstanding shares totaled 1717.18 billion shares,and the total market capitalization reached 5.2 trillion yuan.GEM market's development has been eight years,during the eight years,the company performance level of GEM market companies listed companies are not the same.Some companies appear performance "changing face" situation,the company's performance deteriorating;and some companies in the GEM market jumped up,growth were better,the company operating performance straight up during the short period of time.And the development of China's GEM market is not yet mature,the regulatory mechanism is not sound,information disclosure is not timely,efficient delisting mechanism has not yet been established,uncertainty and risk higher,assault misappropriation,manipulation of the market,profit fraud phenomenon is common.Based on this,this paper attempts to summarize the existing problems in the market in China,basing on the current situation of the development of China's GEM market,summarizing the relevant research at home and abroad.And then discussing the changes in the shareholding of GEM enterprises before and after the listing.And try to extract a comprehensive performance through the comprehensive index method.And further study the GEM listed company to prove that the equity is mainly concentrated in a shareholder or a few major shareholders in the hands of the previous.This paper attempts to answer some of the following questions:First of all,whether the ownership concentration of the GEM will have impacts on corporate performance?In other words,the greater the stake in the GEM listed companies,its business performance is also better?Second,specifically to measure the operating performance of listed companies on the GEM indicators,what impact will the GEM company's equity concentration have on the company's own profitability?Corresponding to the future development of the enterprise capacity,what kind of impact will the current level of operation have?In particular,does this degree of equity concentration further affect the solvency of an enterprise?On the basis of the above problems,this paper summarizes the theoretical basis of the concentration of ownership and the performance of the company,and makes use of the existing data to analyze the present situation of the domestic enterprises on the basis of the domestic and foreign scholars.Finally,by collecting the data of 280 gem enterprises,the fixed effect model of short panel data is constructed to verify the hypothesis of this study.The results show that:(1)There is a significant positive correlation between equity concentration of listed companies and corporate performance.Through the descriptive statistical analysis,it is concluded that the equity of the listed companies on the GEM is highly concentrated in the hands of the top five shareholders.The empirical results show that the top five shareholders' shareholding ratio CR5 has a positive correlation with the Company's performance Y,which means that the higher the concentration of ownership,the better the company's performance level.(2)On the whole,in the case of ensuring that the company's equity is relatively concentrated in the top five shareholders,the checks and balances within the top five shareholders will help the company make more prudent scientific decision-making,effectively prevent the largest shareholder of the situation.Therefore,the top five shareholders within the balance of the higher capacity,the better the company's operating performance.On this basis,this paper puts forward the specific policy suggestions:Firstly,optimizing the ownership structure,maintaining a moderate concentration of equity,and forming effective decision-making,supervision and checks and balances;Secondly,to further innovation more scientific and efficient executive incentive model to reduce the principal-agent problem on the adverse effects of business performance;At the same time,further cultivating and developing China's professional managers market,making the business performance be optimally allocated as much as possible,but also to make the professional managers of the business objectives,the interests of the demands and the enterprise's own business objectives,the interests of the basic needs consistent;Thirdly,we should further encourage,nurture and develop China's gem market,standardize market behavior,and actively promote the GEM enterprises through the GEM market to achieve financial intermediation and promote production,to achieve sustainable management and steady development.Fourthly,to improve the market supervision mechanism of the GEM,improve the information disclosure system,and protect the interests of small and medium shareholders.