Research Of Relationship Between Capital Structure And Performance Of GEM Enterprise

With China’s economic and social development, knowledge and technologyinnovation has become the key elements of the enterprise competitive power infierce market competition. Interactive relationship of start-ups and the capitalmarket is closer. After ten years of preparation, first28companies in GrowthEnterprises Market officially kicked off in China on October302009. GEMspecifically set up a new type of capital market for better emerging industries andgrowing small and medium sized enterprise. The GEM enterprises are mainly inline with the national strategic emerging industry development direction. Thecapital structure of Gem listed companies is different from that of the main board.Because open time of GEM is short, research about the GEM enterprises capitalstructure is inadequate. The relationship between capital structure andperformance research helps providing theoretical basis and practical direction foroptimizing capital structure and strengthen the corporate governance.The content of this article is as following. Elaborate the research backgroundand research significance. Review the domestic and foreign relevant theory andempirical studies about the capital structure and corporate performance. Describethe capital structure and performance of CEM enterprises from2011to2013.Summarize the characteristics of the GEM enterprises’ capital structure. Select therelevant financial data of GEM listed companies in2013as the research sample.Use method of multivariate linear regression analysis by SPSS statistical software.Choose four variables, asset-liability ratio, current debt ratio and shareholders ownership. Discuss them with the explained variable ROE and Tobin Q to analyzethe relationship between capital structure and corporate performance of GEMenterprises. According to the empirical results, put forward relevant policysuggestions and provide reference for improving the performance of GEMenterprises.