The Relationship Between The Valuation Of Listing Corporation And The Scale Of Enterprises

Finance and securities market not only is crucial to a country's economy, at the same time, its development degree is a country's economic development an important indicator of the, which listed company is the foundation and core of securities market, with the securities market continuous development and improvement, along with the coming of the era of value investment, to the valuation of listed companies is more and more important. Valuation is of listed companies a comprehensive judgement, whether it is market analysis, industry analysis, macro analysis and financial analysis, valuations are the final foothold, investors according to the valuation of enterprises to make investment and capital of the recommendations and decisions.China's securities market after more than 20 years of development, regardless of the number of listed companies or the scale have earth shaking changes. Shenzhen and Shanghai stock market are established in 1990, two city, has just set up only eight listed companies. Up to the end of 2015, China's A-share market a total of 2784 listed companies, including the motherboard 1512, 777 SME board, the GEM 495.Or the number of either choose diversified plate structure but not in scale and quantity has a great change in our country's securities market structure is no longer like the original so simple, in addition to the main board market, in recent years gradually set up the SME board market, gem market and the new Sanban market and regional equity trading center has become China's securities market of multiple levels of market structure and industry structure. With China's securities market structure, the market of investors in the investment and investment is also more flexible and changeable. From now on, our country stock market listed companies, the enterprise scale, the market value of transactions and other aspects, the Great changes.The scale of the listed company of China's securities market in the past 2015 average growth into four, which gem outstanding performance is better than the main board. From 2015 each section of the market size of the increase amplitude of view, which the largest increase is the gem, rose to 156.03%; other sectors also have a larger increase such as the Shanghai Stock Exchange main board, board in Shenzhen SME board and the market value of the increase in the size of respectively 20.70%, 42.15% and 104.25%. under the new situation, the market value of the securities market of our country at present small and medium-sized enterprises and large enterprises have have a great change.Considering the present stage our country securities market environment than before has undergone enormous changes, the financial indicators of the nearly several years of China's Shanghai and Shenzhen A-share market listed companies, valuation index and other factors of the data as a basis for research, on the relationship between China's securities market between different sections of the listed company enterprise value valuation and business scale of empirical research.Many changes in the securities market of our country will directly influence to the market of many investors, especially investors in China's individual investors more, these investors understanding of the market is not enough, in the face of the complex changes in the market, are slow in response. This causes the market existence of various uncertain factors, facing so many adverse conditions, investors in the judgment of the market environment and for investment decision bound to have certain blindness, which will directly affect the investor's income and other issues, which affect the long-term and stable development of China's A-share market.Firstly, through to the domestic and foreign literature review, understanding of the mainstream of enterprise valuation theory and method, and then the enterprise scale of valuation effects at home and abroad were reviewed. This paper briefly introduced the valuation of the status of Listed Companies in our country, focuses on the difference and the present situation of the main board and gem market, so that readers have some understanding of the research background. And it introduces the valuation method used in this paper.In order to better illustrate China's Shanghai and Shenzhen A-share market listed enterprise valuation and the scale of enterprises, from the mainboard and carve out board market selected appropriate samples, and through the unit root test and cointegration test to verify the data stationarity. Next, by constructing an appropriate regression model to carry on the empirical analysis, through the empirical regression analysis it was found that smaller GEM listed companies valuation levels higher than the main board listed companies, listed in the two sections of the market valuation of enterprise scale of the enterprise has a certain influence. The result that "the small firm effect" exists in China's securities market, due to the immaturity of the market, speculation Phenomenon is more serious, more investors favor to gem Xiaoshi value enterprises, to push the high gem enterprise shares, the GEM listed companies have a higher valuation.Finally, according to the stock market of our country current situation and the empirical analysis of the results, for China's securities market proposed some policy suggestion of this paper: first, it should be to reform now issuance approval mechanism, from the system eliminate in the issuance process due to illegal violations caused by information asymmetry and rent-seeking exchange; secondly, we should strengthen the government supervision, to establish a more strict and standardized information disclosure system, of listed company information disclosure to implement dynamic monitoring, to vigorously defend the market information are true and complete, as far as possible to eliminate the information asymmetry; and to strengthen the cultivation of the idea of value investors and awareness of risk and from the concept of investors change speculation, to allow investors to fully understand the risk of investing in stocks, to speculation behavior; finally, vigorously develop institutional investors, reduce the proportion of small and medium-sized retail investors, optimize the structure of investors, to return to a rational market, so as to improve the stock ticket market efficiency.