A Study On Financial Factors Of The Value Of Enterprises Listed On SMEs Board

Surrounding the classical theories about the evaluation of corporation values , relevant theories about corporation values and growth—enterprise core competitiveness predominance theory, intelligence capital theory, principal-agent theory and EVA(economic value added) theory, this paper drew 50 samples listed on small and medium-sized enterprises(SME) board of Shenzhen before 2006, got 150 groups of observation data from Year 2005 to Year 2007, and conducted an empirical study mainly on the financial factors of corporation values of SMEs. Firstly, based on the study results of scholars at home and abroad and considering the development situation and characteristics of SMEs, the paper gave basic research hypotheses through theoretical analysis. Secondly, the paper chose Tobin's Q as the dependent variable and indices reflecting profitability, repaying capability, operating capability, growth potential, assets structure and the governance structure as the independent variables and made a detailed and comprehensive empirical study on the issue. Implementing a descriptive statistics method, the writer analyzed the overall changing trend of corporation values of SMEs and their fluctuation extent. By making the Pearson correlative analysis between Tobin's Q and separate indices, the paper identified the key factors of corporation values and important indices which are significantly correlative to corporation values. That has proved some basic theoretical hypotheses, which laid the foundation for the statistical regressive analysis. The writer made the reasonable explanation where necessary. Through the statistical regressive analysis, the paper found that compared to the economic profit indices, the traditional accounting profit ones are superior in interpreting the changes of corporation values. That has proved relevant theoretical hypothesis. The writer described the reason of the phenomenon and emphasized the necessity of using the economic profit indices which focus on EVA to evaluate values of SMEs. Besides, the statistical regressive analysis between Tobin's Q and indices except ones of profitability proved the basic theoretical hypotheses mentioned above once again and recognized significant indices further. And a set of indices about the evaluation of corporation values referring to profitability, repaying capability, growth potential and the governance structure was established based on value management. To solve the multicollinearity problem, the paper applied the stepwise regression method to make the separate best appropriate linear regressive models about profitability, repaying capability, growth potential, the governance structure and comprehensive factors. According to Adjusted R Squares, the paper sorted the key factors in terms of their importance extent. We found that the comprehensive value regressive model is the best one. Growth potential is the secondly important factor in assessing corporation values. Next is repaying capability, and then, profitability, and the governance structure finally. Lastly, the paper made a conclusion in general and gave advice and measures to increase the values of SMEs and help investors choose excellent enterprises. We suggested SMEs enhance their profitability, repaying capability, growth potential and improve the governance structure by ascertaining the reasonable scale of the board of directors and making the right salaries system for the management in order to increase the corporation values, which can promote the development of SMEs board. We also advised investors to make an emphasis on the evaluation of profitability, repaying capability, growth potential and the governance structure of SMEs and use the best comprehensive value regressive model to choose the excellent enterprises listed on SMEs board.