Ownership Structure And Firm Growth

Since the GEM officially launched in Shenzhen stock exchange at the end of October2009, for five years, it has become an important driving force to support the high and new technology enterprises development, to promote the adjustment of economic structure. Because the GEM listed companies of our country are mostly high-tech private enterprises, so its growth speed is faster than other listed companies of the plates, but how to growth healthily and develop faster in the complex and fierce market competition environment is still the key problems these enterprises have to face. Through the study of company growth, not only can provide the basis for managers’ long-term business decisions, but also can help investors to select more investment value of the enterprise according to the growth index, improve the efficiency of investment decision, at the same time, also provide the basis for regulators to set policy. So the study of the GEM listed company growth has strong necessity and research significance.The companies’ growth is influenced by various factors, this article from the perspective of corporate governance; select the ownership structure of the corporate governance structure to study its relationship with the companies’ growth. So how to evaluate the GEM listed companies’growth? What kind of relationship between the ownership structure and company growth? These are the main research issues in this paper.This article first reviewed the domestic and foreign literatures about the ownership structure and corporate performance and growth, combing analysis the company growth theory and related theories as well as the characteristics of the gem listed companies in China. Secondly this article selects279companies the GEM listed before January1,2012as samples, with its2012and2013, two years financial report data as the foundation, using the principal component analysis (PCA), choose the nine financial index in2years vertical index that represent the profitability, development ability, operation ability and solvency to build the growth index, as this empirical explained variable in this paper. Thirdly, this paper described ownership structure characteristics based on the sample data report in2012, ownership structure are divided into four aspects contents: ownership concentration, equity balance degree, equity property and equity liquidity, and empirical analysis respectively test how is the relationship between the GEM listed company shareholding structure and the growth. According to the result analysis, we put forward some policy Suggestions, hoping to provide direction to the healthy growth of the GEM listed companies in China.Through the empirical research, draw the following conclusions:The first big shareholders’ shareholding of GEM listed companies was positively related with the company growth. The relationship between the top five shareholders’ shareholding and company growth was significantly inverted u-shaped. Executive shareholding and corporate growth has significant negative correlation relationship. Current ratio was positively correlated with the company’s growth. On behalf of equity balance degree Z234was negatively related with the company growth.