Research On Financial Risk Of Shareholding Structure Of Manufacturers In Growth Enterprise Market

As the industry with most listed companies in Growth Enterprise Market (GEM), manufacturing is of strategic significance for China's capital market development and supplement.This manufacturing, different from the traditional manufacturing sector with characteristics of high innovation, high growth and high-risk; also has own peculiarities of shareholding structure. Shareholding structure is the cornerstone of corporate governance and its advantages and disadvantages affect the level of corporate governance, thereby affecting the company's financial risk level. So it is with certain practical value to explore the relationship between shareholding structure and financial risk of GEM Manufacturers and propose recommendations to optimize the shareholding structure to improve long-term sustainable development for GEM Manufacturers and supplement the insufficiency in the development of traditional manufacturing.This thesis, selecting the GEM Manufacturing 2011-2013 data for the study, firstly analyzes current status of shareholding structure and financial risk of GEM manufacturers and explores relevant theoretical basis to find supporting points to analyze the shareholding structure and corporate financial risk mechanism. It is based on above study to propose hypothesis of this thesis. Then the author defines the alternative variable of shareholding structure and financial risk for sample companies, builds a financial risk index system reflecting GEM manufacturers'characteristics, uses catastrophe progression method to calculate the index system score, and conducts regression analysis of the final score and shareholding structure variables to test the hypothesis of this thesis. Finally, to illustrate the stability of the regression results, the author proceeds robust test for correlation between shareholding structure and financial risk to draw conclusions and propose some recommendations.This thesis analyzes sample companies' shareholding structure from equity property, equity balance degree, ownership concentration and equity circulation structure. Through empirical analysis, the author ultimately concluded that:the shareholding proportion of institutional investors and senior management is negatively correlated with financial risk but with no significant impact; negative correlation between corporate shares and financial risk demonstrates an appropriate increase of shareholding proportion of senior executives and corporate as well as an decrease of shareholding proportion of institutional investors can reduce financial risk; significant negative correlation between ownership concentration and financial risk indicates that the major shareholders of GEM manufacturers are not always emptying company but providing support in case of financial risk; significant negative correlation between share balance degree and financial risk illustrates a strong share balance can enhance the effectiveness of supervision among shareholders to ensure the efficient operation of the company to maintain a low level of financial risk. Obviously positive correlation between outstanding shares and financial risk reflects a quite popular profiteering attitude in stock market which directs investors tend to take "free ride", thus increasing company's financial risk.It is based on above study that the author proposed some recommendations for the GEM manufacturers which include optimizing main investment structures to meet stakeholders' own interests, raising a reasonable degree of ownership concentration and balance, and reducing the share circulation to ensure a healthy and stable growth of the company.