GEM Companies In China Growth And Value Creation

As the reform and opening up, small and medium-sized enterprises in China have developed rapidly, gradually becoming social and economic important components in China. However, at present, small and medium sized enterprises in China are faced with financing difficulties, which to some extent becomes the biggest bottleneck for small and medium-sized enterprise development. On October 30, 2009, GEM was officially listed for trading, giving service to small and medium-sized hi-tech enterprises, which widened the financing channels effectively, and promoted the development of small and medium-sized enterprises. But at the same time, comparatively low entry threshold makes many enterprises on GEM market expend to consume resources for rapid growth with blindness, which cannot be effectively, create value and contribute to market economy. Therefore, value creation has caused more and more scholars and investor's attention behind the problem in small and medium-sized enterprise growth on gem market.This paper firstly gives literature summarizing and evaluation on enterprise value creation theory, enterprise growth theory and value creation and growth relations related paper; Furthermore, the company's financial goal theory are analyzed in detail, which explains the enterprise's financial goals should transform the goals of high growth before listing enter presto the goals of post-market value creation, and then study by empirical analysis of enterprise value creation and growth found that the relationship between the empirical study is poured u-shaped relation for the enterprise value creation and growth. The end the paper, the empirical analysis conclusion as a starting point, purposefully presents suggestions for the listed company to improve the supervision, market supervision and evaluation, thus promoting the healthy development of the GEM companies in China and the ever-improving GEM market.