An Empirical Study On The Profitability Of Small And Medium-sized Enterprises Based On Shenzhen Stock Market Data

Since the reform and opening up,SMEs have experienced 40 years of continuous development,and have become an important part of the national economy.Firstly,the number of small and medium-sized enterprises(SMEs)is increasing.From the reform and opening up to less than 100,000 private enterprises,up to 2017,the SMEs in China included 73,281,000 households,accounting for 98% of the total number of enterprises in the country.Secondly,SMEs in China have made great contributions to the national economy,contributing more than 50% of tax revenue,60% of GDP,70% of technological innovation,more than 80% of urban employment,and more than 90% of the number of enterprises [1].Secondly,in recent years,the government has attached great importance to small and medium-sized enterprises,issued a series of policies,promulgated the Notice on Preferential Income Tax Policies for Small and Small Profit Enterprises in financing,and promulgated the Law on Promotion of Small and Medium-sized Enterprises in law.Therefore,SMEs play an important role in our national economy.In the actual development,although SMEs benefit from the national policy,they will face serious problems once they are impacted by the economic market because of the low level of internal management and insufficient ability to resist market risks.Therefore,this paper mainly studies whether SMEs are really profitable after benefiting from national policies,and in what aspects there are problems.From the current situation,due to the influence of internal and external factors,the development of small and medium-sized enterprises not only has a very long-awaited future,but also has a variety of difficulties.How to improve the profitability of SMEs after financing,so that SMEs can achieve sustainable survival and good development,has become a matter of great concern to macro policy makers and business managers,and is also the key to national economic revitalization.Because most of the listed companies on SME board are SMEs,and because of the availability of data,this paper takes SME board as the sample space,chooses 536 SMEs on Shenzhen Stock Exchange SME board from 2008 to 2017 as the research object,starting from the development status of SMEs,taking the discussion of SMEs' profitability as the clue,and taking the research as the clue.For the purpose of influencing factors of small enterprises' profitability,this paper conducts empirical analysis from five aspects: capital structure,operation ability,solvency,growth ability and enterprise scale,and then draws the relationship between profitability and influencing factors.In order to understand and predict the trend of SMEs' profitability and to model and forecast the return on net assets representing profitability,this paper chooses the return on net assets of listed companies on SMEs' board from 2004 to 2017 to make time series analysis,and uses ARMA model to forecast the return on net assets of listed companies on SMEs' board.This paper takes the theory of profitability as the support point,and takes the theory of profitability as the support point.The literature consulted is supplemented by empirical analysis.The following conclusions are drawn:(1)SMEs' operating capacity is significantly positively correlated with profitability at 5%;(2)SMEs' scale is negatively correlated with profitability at 5%;(3)capital structure is negatively correlated with profitability at 5%;(4)growth capacity is positively correlated with profitability at 5%;(5)solvency and profitability are positively correlated with profitability at 5%.There was a significant negative correlation at the level.(6)Using ARMA model to forecast the profitability,the results show that the profitability of SME board in 2018 is better than that in 2017.In terms of innovation,according to the literature consulted,there are few research topics on the profitability analysis of small and medium-sized enterprises.Most of the literature studies the profitability of a certain industry and its influencing factors,or the relationship between a certain influencing factor and profitability.Based on the existing research foundation,this paper analyses the factors affecting profitability from many aspects within the enterprise.The disadvantage is that the human factors and macro-environment are not taken into account,so there is incompleteness in the perspective of research,which will need to be improved and enriched in the future.