The Influenceof Equity Characteristics On Business Performance Of GEM Listed Companies

In order to solve the financing difficulties faced by small and medium-sized enterprises in the process of development,in order to promote the economic transformation and development,the gem came into being.Its establishment not only improves China’s capital market structure and enriches market functions on the existing basis,but also promotes the improvement of market resource allocation efficiency and creates favorable conditions for the development of small and medium-sized enterprises in China.In recent years,the performance of gem listed companies shows the situation of increasing income but not increasing profit.How to improve this situation has become the focus of theoretical and practical circles.The performance is influenced by the corporate governance structure,which is determined by the ownership characteristics,so the ownership characteristics are an important factor affecting the corporate operating performance.Considering that most of the listed companies on gem are innovative technology enterprises with prominent family characteristics,and their shareholding characteristics are different from those of listed companies on the main board,the existing main board market research conclusions are not applicable to gem.Therefore,this paper selected the data of 570 companies listed on the gem of shenzhen stock exchange before December 31,2016 as the research sample for six consecutive years,and investigated the relationship between the equity characteristics and the company’s business performance from the perspective of enterprise life cycle,so as to provide references for improving their performance.On the basis of reviewing and sorting out relevant literatures for theoretical analysis,this paper first adopts the method of cash flow portfolio characteristics to divide research samples into cycle stages,and then USES the method of multiple regression analysis to empirically test the relationship between the equity characteristics and business performance of gem listed companies in the growth,maturity and recession stages.The results show that the effect of the equity characteristics of gem listed companies on the company’s business performance is affected by the stage of the enterprise’s life cycle.For the companies listed on gem in the mature stage,there is a significant negative correlation between the degree of ownership concentration and the integration of two jobs and their business performance.However,the equity concentration,integration of two jobs and busines performance of gem listed companies in the stage of recession are positively correlated,but fail to pass the significance test.On the basis of enriching the theories of equity ownership and business performance,this paper aims to provide reference for the continuous improvement of business performance of gem listed companies.To be specific,the characteristics of the ownership structure should be adjusted according to the different characteristics of the company’s life cycle stage,so as to help maximize the positive effect of ownership characteristics on business performance.