The GEM Listed Companies The Correlation Studies Of Capital Structure And Performance

Since October 23, 2009, There are 28 companies listed on the Shenzhen Stock Exchange GEM, then GEM active in the big stage of the capital market in China. As of March 20, 2015, there are 426 companies on the GEM. In the past five years, The performance of companies listed on GEM is unstable. Due to GEM companies concentrating on high-tech enterprises, which belong to its early stage of development. Its business scale, nature and characteristics of the market determine the unstable stage business performance.As the macroeconomic environment continuing to get better, regulating the SFC system constantly, GEM listed companies attract more and more attention from people. Whether there is relation between GEM Capital Structure and Corporate Performance also caused a heated debate. Firstly, I review the theory about the correlation between structure and corporate performance at home and abroad. Then, adopt the method of descriptive statistics for the GEM listed company capital structure and performance of the present situation has carried on the comparatively detailed data analysis. The analysis of results of GEM listed companies show that asset-liability ratio is low, the ratio of current liabilities is high, the ratio of debt-to-long capital is low, asset utilization is low, current capacity is eligible poor and so on. Secondly, the use of factor analysis made three total factors that represent the corporate performance of 17 indicators, and three main factors are integrated into the integration of corporate performance indicators which is viewed as the dependent variable based on the size of the contribution rate. Select the asset-liability ratio, current liabilities ratio, the ratio of debt-to-long capital and the ratio of interest-bearing debt as independent variables, establishing Multiple regression models for correlation between capital structure and corporate performance, and choose Stata software to establish a fixed effects model empirical analysis, by collecting companies listed on GEM 2010-2013 unbalanced panel data as sample data. Empirical Analysis of results: asset-liability ratio, the ratio of current liabilities and interest-bearing liabilities ratio was negatively correlated with performance; the ratio of debt-to-long capital was positively correlated with corporate performance and significance is not strong. Finally, Due to the present situation and the empirical results of GEM listed company’s capital structure and corporate performance, I will give suggestions and countermeasures about optimizing the capital structure and improving corporate performance from a macro and micro perspective of GEM listed companies.