An Empirical Study On Factors Affecting Of Operating Risk Of IT Companies Listed On GEM Based On Factor Analysis

With the advancement of technology and the development of economic, entrepreneurship has become a strong driving force to socio-economic development. Most of these companies are SMEs which have high flexibility and good development prospects. Compared to large enterprises, they have more urgent demand and power on innovation. But constrained by factors such as the size of capital, they mostly have financing problems. In2009, GEM stock was officially opened at Shenzhen Stock Exchange. The establishment of GEM not only promote technological progress and industrial upgrading, but also provide a cradle for SMEs. However, most of these companies still face a variety of risks after listing. China’s GEM is a new market. Its development is not yet mature. Affect by the macroeconomic, market competition, regulatory failure, and other factors listed in the company’s own growth, the companies listed on GEM have high operating risk, and the sources of risk is complex.The management level of growing company is unable to keep up with the growth rate, which leads to a poor stability. And raised funds are not get reasonable used. In order to guarantee the normal operation of the GEM market and China’s economic sustainable and healthy development, it is necessary to study the operating risk of GEM listed company deeply.This paper introduces the concept and characteristics of the GEM market. It also introduces the definition of risk and several common risk assessment methods. Based on the research achievements of scholars at home and abroad, the paper found, in the past, the fuzzy comprehensive evaluation, grey clustering and Z-scores were often been used on the study of enterprise operating risk. In order to enrich the research results, the paper choose factor analysis. Analyzes the factors that influence the enterprise operating risk, as well as their mechanism, from a macro economic, market environment and the enterprise management, making a good theoretical groundwork for the empirical research behind. Combining with development situation and characteristics of GEM listed companies in our country, the paper construct operating risk evaluation index system. In order to reflect the high-tech characteristics of GEM listed companies, we choose58listed companies from information technology industry as the research object. This paper use the factor analysis method to conduct the empirical analysis on33indicators of the sample company, calculate the factor score and comprehensive ranking. The results show that:(1) The gap of ability to withstand risks between Gem listed companies in information technology industry in our country is not so big.(2) Enterprise risk management is often confined to the financial risk. It shows most enterprises’understanding of the risks are currently still limited to financial risks, and pay little attention to the management level, the risk of Innovation in R&D.(3) It is still necessary to improve the capital structure. GEM-listed companies generally have a higher proportion of equity. With the growth and expansion of the scale of enterprises, they should pay more attention to the financial leverage to maximize enterprise value.(4) Business growth capacity is weaker than before. Raised funds have not been fair used which reduce the profitability of the business.(5) R&D capability is still an important indicator of business to resist risks.The article puts forward some recommendations to avoid operating risk. Government should improve the operating environment for GEM listed companies, increase support for high-tech industries, improve the information disclosure system of the GEM market and strengthen economic activity regulation. Enterprises should set up the consciousness of risk prevention, form full participation mechanism. It should establish external information feedback mechanism to seize opportunities or avoid risks. In addition, the enterprise should also optimize the capital structure, enhance the level of management and control financial risks, continue to strengthen research and development ability.