The Empirical Study On The Relationship Of Companies Listed On Gem Equity Structure And Growth

Since2009, GEM has been growing at alarming rate, having occupied a very important position in China’s capital market and being an important part of China’s capital market. In less than three years, the number of companies reached355, size and market capitalization of its financing have reached unprecedented maximum and have further improved China’s capital market and promoted the rational flow of capital. GEM-listed companies are mostly family businesses, and its ownership structure has its uniqueness. Ownership structure is the foundation of corporate governance, corporate governance process of growth in the company plays an important role in optimizing the shareholding structure can improve the corporate governance performance. To study the shareholding structure of companies listed on GEM and the relationship with the company may be able to optimize the shareholding structure of companies listed on GEM and improve the company’s productive, having far-reaching significance on the long-term development.First of all, the author reviews the domestic and foreign study about the ownership structure, corporate performance and growth of the literature, and expounds the ownership structure and firm growth theory basis:the company growth theory, principal-agent theory and incomplete contract theory. Secondly, the author summarizes the characteristics of gem characteristics and the ownership structure of listed companies in China, through the factor analysis method to evaluate the gem’s growth, this article selects the risk control ability, profit ability index, development capacity index and corporate cash flow ability, operation ability this five aspects to comprehensive evaluation of the company growth. Third, the paper selects355companies listed on GEM since October2009listed as samples, and tests empirically the relationship between ownership structure, ownership concentration, equity balance degree, equity deviation and the company’s growth. Through empirical research we have come to the following conclusions:The proportion of tradable shares were tested with the company’s growth is a positive correlation in family businesses and non-family businesses; Non-personal stake sexual relations with the company’s growth is not clear, there is conducive to business executives share growth. Ownership concentration negatively correlated with firm growth, this relationship is more significant in family businesses. Non-family businesses, equity balance significantly,but which is weaker in family businesses. GEM Equity deviation sexual relations with business growth is not significant. Through previous theoretical analysis and empirical research, to further improve the corporate governance, we propose some advice:First, managers and owners need optimize the ownership structure, to achieve the actual control of checks and balances; Second, to introduce institutional investors, especially strategic investors and to increace moderately state-owned shares and legal person shares ratio; Third, for the purpose of long-term development,the government need improve the GEM regulatory mechanism. In addition, investors should be rational view of the gem market, invest carefully.