The Empirical Research on Financial Risk Factors of GEM Companies

Wenlin GU, Xiangzhong KONG

Abstract


GEM has injected fresh blood into the development of China’s securities market; it eased the long-term “financing” problem of high-tech SMEs effectively. However, the high risk of the GEM market has caused great concern of all parties. This paper analyzed the factors of affecting financial risk of GEM companies with the regression analysis methods. Empirical results show that GEM Company’s financial risk and the scale of equity is a negative correlation, and corporate solvency, profitability, operational capacity, development capacity, investment income and cash flow does not have a significant linear relationship. The paper further proposed the measures of controlling financial risk in the GEM Company.
Key words: GEM; Financial risk; Regression analysis


Résumé: Le GEM a injecté du sang neuf dans le développement du marché chinois sur les valeurs mobilières, il allégé le long terme "financement" problème de PME de haute technologie de manière efficace. Cependant, le risque élevé du marché de GEM a provoqué une grande inquiétude de toutes les parties. Ce document analyse les facteurs qui affectent des risques financiers des sociétés GEM avec les méthodes d'analyse de régression. Les résultats empiriques montrent que le risque financier de la Société GEM et l'échelle de l'équité est une corrélation négative, et la solvabilité des entreprises, la rentabilité, la 1 capacité opérationnelle, la capacité de développement, les revenus d'investissement et les flux de trésorerie n'a pas de relation linéaire significative. Le document propose en outre les mesures de risque financier majoritaire dans la Compagnie du GEM.
Mots clés: GEM; Des risques financiers; L'analyse de régression


Keywords


GEM; Financial risk; Regression analysis;GEM; Des risques financiers; L'analyse de régression;Canadian;Social Science

References


MING Yihao. (2009). China’s Growth Enterprise Market Risk and Control. Learned Journal of Chengdu University, 4, 15­-17.

XUE Wei. (2006). Data Analysis Based on SPSS. Beijing: China Renmin University Press.

XU Yan. (2010). Identification and Prevention to Financial Risk of GEM. Business Accounting, 14, 41-42.

ZHANG Hongri. (2009). Financial Risk Early Warning in China SME Listed Companies. Economist, 6, 70-71.

ZHANG Yuqin. (2008). Financial Distress Play an Important Role in the Financial Risk Management of China’s Listed Companies. Accounting Research, 12, 53-54.





DOI: http://dx.doi.org/10.3968%2Fj.css.1923669720110704.Z20

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