Ownership Characteristics And Performance Research Of Companies Listed On GEM

Since Berle and Means put forward the separation of ownership and control theory, corporate governance research has developed rapidly, forming principal-agent theory, incomplete contract theory and transaction cost theory. These theories explore the relationship between ownership structure and corporate performances from different angles; its purpose is how to improve business performance. Some scholars use empirical methods to study the relationship between the equity characteristics and corporate performance, and achieve fruitful results.The early nineties of the last century, the establishment of the Shanghai Stock Exchange and Shenzhen Stock Exchange marked the founding of New China’s securities market. Over the past20years, the development of the securities market has greatly promoted the development of market economy, has contributed important force in the development of the national economy. The SME board was established in2004, the GEM was established in2009, China has initially established a multi-level capital market. With the establishment of the securities market and the diversification of ownership structure, Chinese scholars began to explore the relationship of equity characteristics and firm performance, scholars listed on the Shanghai and Shenzhen-based companies also achieved fruitful results.This study has two meanings, the first is to improve the governance structure of companies listed on GEM, the second is the issue of the trading statute and to promote the development of the securities market. The listing threshold, regulatory framework, information disclosure of GEM and the Main Board are different. Company Ownership Characteristics impact on performance is not the same mechanism. Research on GEM is become necessary. This paper systematically studied the GEM companies ownership characteristics and performance, perfect the study on ownership characteristics and performance in different markets. This paper studies the relationship between equity characteristics and performance of the GEM companies, research method is a combination of theoretical and empirical research. There are six chapters of this article:Chapter Ⅰ:Introduction. This chapter describes the research background, significance, research ideas, articles framework, research methodology and expected contribution.Chapter Ⅱ:A Literature Review and theoretical basis. This chapter reviews the foreign and domestic research literature on the relationship of the equity characteristics and performance, and simple evaluate of the literature. Foreign literature study to equity ratio and contrast the similarities and differences when control rests in the management and control rests in the largest shareholder. The theoretical theory is based primarily on the theory of corporate governance, such as the separation of two rights theory, principal-agent theory and incomplete contract theory, these theories to explain the mechanism of the Company’s equity characteristics of performance.Chapter Ⅲ:Analysis of the Growth Enterprise Market (GEM) Company. This chapter describes the GEM, introduces the concept of GEM and the development of China’s GEM. It analyzed the characteristics of China’s GEM, the effect of GEM for China’s economic development. Focus on analysis of the geographical distribution of GEM companies, industry distribution and characteristics of the size of the share capital. GEM companies are mainly concentrated in the eastern coastal areas, while the central and western provinces are relatively rare. Manufacturing company still has the majority of GEM company, innovation is still not enough, to some extent. The initial size of GEM companies is generally small, but the GEM will gradually birth of large companies.Chapter5:An Empirical Analysis. There are descriptive statistical analysis, correlation analysis and regression analysis in this chapter. The empirical results show that:the company ownership concentration and corporate performance relationship; equity checks and balances, and corporate performance is positively correlated within a certain range; senior management ownership on firm performance is no significant role in promoting the year, but senior management sell shares of the poor performance of the company; securities Investment Fund Ownership and Corporate Performance significant positive correlation; venture capital institutions Ownership and Corporate Performance wireless relationship.Chapter6:Conclusions and policy recommendations. Summarized the findings of the article, it is recommended to optimize the operating environment for SMEs, vigorously develop the institutional investors and support the development of venture capital industry, combined with the actual situation of the GEM.Ownership Characteristics and Performance of the GEM companies are relatively small, no more mature research results. This article systematic study the relationship of the GEM companies ownership structure and corporate performance, and achieve good results. However, this article does not use panel data and accounting indicators data vulnerable to interference of human factors, the study conclusion is not particularly convincing, need use a richer sample data to test. The main contribution of this paper is as follows:1, new study object. This article is set up when the GEM market has just established. The characteristics of GEM companies also have different characteristics with the Main Board companies. Domestic and foreign scholars often study the relationship on the ownership structure and corporate performance, but have not obtained the relevant conclusions of the GEM. Therefore, the study of the Chinese GEM is very necessary and important.2, new study angles. Previous studies shares into state-owned shares and legal person shares and tradable shares, which is not suitable for circulation times. This paper attempts to innovation in accordance with the type of shareholders by senior management stake, securities investment fund stake and venture capital organizations stake were studied, and draw meaningful results.3, the policy recommendations have practical value. In combination with the findings and the actual situation of the GEM, optimize the equity structure of listed companies to improve corporate governance performance and the construction of the GEM system. Policy recommendations on the analysis of the problem is justified, the new angle and operable.