Research On The Relationship Of Profitability And Growth Of Companies Listed On Growth Enterprise Market

Profitability and growth ability are important factors measuring the competitive ability of Growth Enterprises Market. Objective is to research the development of second-board market in China. We all know that they have the relationship. But many people do not consider the relationship between them. It is important for manger to know the relationship. In the 21st century, Software and Information Technology Services Industry is considered by investors, so it is important to know the relationship.This paper firstly analyzes the Growth Enterprises Market's profitability and growth ability situation of our country and its influence factors. Secondly, choose 17 Software and Information Technology Services Industry companies on Growth Enterprises Market based on the data from2010 to 2014 the paper chooses 9 indicators to measure profitability and 9 indicators to measure the growth ability, then uses factor analysis to construct a comprehensive index measuring profitability and growth ability respectively, then constructs a two dimensional matrix based on the two comprehensive indicators. Then use the sample clustering analysis method to classify the sample companies. We can see that the 17 companies have different the value of profitability and the growth ability, and the two indexes don't increase or reduce concurrently. Take WANGSUKEJI and LANGKEKEJI for an example, Use granger causality analysis to analysis the two 5-year time series comprehensive score, the result shows that the previous year's growth ability is the granger cause of the profitability of the year. Changes in the growth ability will impact the profitability orientation.