The GEM Study On The Relationship Between The Management Risk And Corporate Performance Of Listed Companies

Corporate performance and risk are closely linked, with good corporate performanceneeds with effective risk control as a guarantee. From the microcosmic point of view,enterprise risk exists in enterprise’s investment and financing decisions, management riskinvestment decision. Decisions of company personnel and management personnel in theoperation and management of the error or exchange rate changes lead to future revenues andcosts increase the risk of closely linked with corporate performance. Operating risk is inherentin the enterprise. This is because the enterprise all aspects of the production and businessoperation will be affected by the influence of external environment and internal condition,thus inevitably is uncertain. Since founded in2009, the gem of the listed company set up timeis short, less money, small scale, management is not stable and has a big risk of operation.Therefore, the management risk impact on corporate performance is worth studying. So thisarticle will be combined with the feature of the gem listed company development to study thegem business risk and the relationship between the corporate performance of listed companies,to understand the characteristics of the gem listed company business, the listed companyguidance for the reasonable allocation of resources, improve enterprise operating efficiency,in order to establish a scientific and reasonable company to provide guidance and advice tomanagement mechanism.This paper firstly analyses the theory, introducing the connotation of business risk andexpounds the theoretical basis of corporate performance, and then the gem listed companiesmanagement risk and the relationship between corporate performance and empirical research.In2011-2013, three years of the gem listed companies406samples as the object, choose therate of return on common stockholders’ equity and tobin Q value to be explained variable,operating leverage coefficient as the explained variable, the growth, the company size and theability to cash flow as control variables. Two hypotheses are proposed according to theoreticalanalysis, and build a model of the above variables, the use of statistical analysis softwareSPSS19.0descriptive analysis, correlation analysis and regression analysis to verify thecorrectness and validity of the model assumptions. The empirical results show that the gem listed companies operating risk negativecorrelation with corporate performance. As a result, the gem listed companies shouldstrengthen the management of assets, setting reasonable assets structure, for operational riskcontrol, and improve the corporate governance mechanism. More important is to establishreasonable business strategy, increase sales revenue, operating leverage effects on theperformance of the company, make the enterprise to the healthy and stable development.