The Relationship Between Ownership Structure And Corporate Performance Of GEM Listed Companies

The China Growth Enterprise Market officially started trading in the Shenzhen Stock Exchange in October 2009.By the end of 2018,739 companies had been listed for trading.Compared with the main board market,China’s GEM has relatively low listing requirements for the company’s capital size,establishment time and profitability,and most of them are mainly family-owned enterprises before the listing.The assets are small and the main business is single.Obvious special equity structure issues.The shareholding structure is one of the important components of corporate governance.It directly affects the company’s performance by determining the company’s equity distribution and management’s position.Whether an enterprise has an optimal ownership structure and how it affects company performance has become one of the focuses of scholars in corporate governance.However,China’s GEM listed companies have special shareholding structure problems,but there are few people studying them,and the research considerations are not comprehensive enough.This paper mainly improves the ownership structure to achieve the purpose of improving company performance.Based on theoretical analysis and empirical analysis,354 companies listed on the GEM were selected for the five-year period from 2013 to 2017,from five aspects:operational capability,solvency,profitability,development capability and shareholder profitability.Select financial indicators,construct a company performance evaluation system,and use factor analysis to extract four main factors to quantitatively evaluate performance,and then establish a linear regression model with the three dimensions of equity structure,equity balance,and equity attributes.Based on this,the relationship between China’s GEM companies is studied.The results show that the concentration of ownership,the proportion of institutional shareholding and the performance of the company are in a U-shaped relationship;the internal shareholding is positively related;the equity balance is negatively correlated.On the basis of the conclusions,five policy recommendations are proposed to maintain the moderate concentration of equity of the GEM companies,enrich the investment subjects,and improve the modern governance system.