Research On The Growth Of Listed Companies In

Under the age background of economic recovery and rapid development,setting up a multitiered capital market system is the necessary strategic choice forfuture development of China’s economy. The growth situation of firms on GEM,of which determination and see-saw of stock prices, the operation ability and theoverall market performance are closely related to growth of firms, determinesthemselves fate in market. The listed companies on GEM, most of which are at theearly stage of life cycle and fluctuate a lot on performance, have a greatly volatiledeveloping prospect. Therefore, analysis on growth concerns that if small andmedium-sized and new enterprises in China could own strong competitiveness andincrement of enterprise value.The study of the growth of the listed companies on GEM analyses theirgrowth situation and continued growth potential mainly. First and foremost, thepresent paper makes a comment about research results of growth of the listedcompanies on GEM at home and abroad, and makes a simple description on therelated theories of enterprises growth. Next, this paper analyse the factors whichinfluence the growth of firms on GEM at macroeconomic data. Then, build thequantifiable evaluation system of the business growth on GEM companies. Thispaper applies SPSS statistical software to establish the evaluation index andgrowth model by taking355listed companies on GEM in China as samples (Alldata as of December31,2012). the paper measuers the growth of sampledcompanies listed on GEM growth with factors analysis method, and tests thereliability of the model with PE and comprehensive rating index of GEMcompanies given by rating organization.In our empirical research, from the ranking of comprehensive factor and eachfactor, draws a conclusion that profitability, risk control ability, scale of theenterprise, quality of staff and R&D capabilities affect the overall score of growthof companies listed on GEM significantly. These factors objectively reflect thegrowth of GEM companies.At last, in this paper, we summarizes the research findings and put forwardsome countermeasures and suggestions for increasing the growth of Chinesecompanies listed on GEM in the current period. I hope the article can provide assistance for the operators of the GEM companies, help investors judgeenterprises’ investment value and development potential to make investmentdecisions, and assist regulators to strengthen supervision and management andmake corresponding policies for reference.