Study On The Growth Evaluation System Of IT Listed Companies In China

Under market economy condition, how to seek survival in the competition and development in surviving is the severe reality that any listed companies can't avoid. The growth of listed companies is the foundation stone and prerequisite that the security market moves towards. A healthy security market needs rational investment behavior to take the mainstream, but the rational investment behavior cannot be short of the listed companies full of development potentiality. Now according to the current situation of listed companies in China, they can live but not long. In this background, the study on the growth evaluation of listed companies, no matter for the investors, creditors or the listed companies, is very important. Because of this, regarding IT listed companies as the research object, and basing on their open financial statement data, the paper tries to set up a simple and feasible evaluation system of growth of IT listed companies.The content is mainly divided into three parts.The First is theoretical foundations on growth evaluation of listed companies. Any research activities need scientific theory to guide, so is the research on the growth appraisal system of the listed companies. The paper has introduced four theory, namely, the goal of enterprises and financial administration, theory about enterprise's life cycle, theory about enterprise's growing up and theory about securities investment on the basis of foundation analysis of increase group. What's more, it has pointed out the directive significance on growth evaluation of listed companies separately.The second is the choosing of growth evaluation indexes of IT listed company. To prevent from the one-sidedness of choosing index only by subjective analysis in the past, the paper has adopted the method of quantitative analysis. Firstly, according to the standard of Return on Equity >8% and average growth rate of net profit >0, all the IT Listed companies are divided into two groups. Those who meet two standards are growth companies while the others are not. Then on the basis of choosing indexes subjectively in tradition, the paper has adopted Descriptive Statistics, Variance Analysis, Independent sample T Test and so on to analyze and test the difference of the indexes in two groups. The result shows that average growth rate of net profit, Return on Equity, Return on total Assets, and Ratio of Operating cash flow tototal assets have significant difference between two groups, which proves the four indexes have remarkable influence on the growth of IT listed companies. Finally, through Correlation Test to the four indexes, the result proves that there is not great correlation between them, which confirms that the four indexes are the significant ones to influence growth appraisal of listed companies.The third is to set up the growth evaluation model. In order to avoid the one-sidedness of the single model, Two-group Fishers Linear Discriminate Analysis is adopted, Principal Components Analysis and Linear Regression Analysis. Through examining back to the result of these models, we find that the evaluation results of three models are all very good, the differentiating rate is very high, which proves that the financial indexes selected before are reliable and it can distinguish growth companies with ungrowth companies accurately. But comparing with the discrimination results of three models, Two-group Fishers Linear Discriminate Analysis' differentiate rate is lower, and it can distinguish two kinds of companies evenly and reasonably;in addition, the evaluation results can be counted by statistics software directly and it is simple to handle, so Two-group Fishers Linear Discriminate Analysis model is the best one. According to the evaluation results of Two-group Fishers Linear Discriminate Analysis model, we find there are 17 growth companies and 38 ungrowth companies in all 55 companies which proves that IT industry in China has already emerged some companies with growth. Among the 38 ungrowth companies, there are 28 companies' scores of growth are higher than zero which account for 50.91% which proves that most IT listed companies in China are going to be the growth ones. The prospect of the whole IT industry is still bright.The main innovation of the text lies in: Firstly, it has overall and systemic theoretical foundation;Secondly, choose the indexes by analyzing subjectively combined with quantitative analysis, a series of statistical method like Analysis of Variance, Independent-sample T etc., make the indexes more scientific and pertinent;Thirdly, several methods are used to set up models and select optimum one which has strengthened the dependability of models greatly.