Abstract
Based on the 2016 annual data, the article studies the competitiveness of 87 listed companies, who initially went public on China’s GEM in 2015. Taking 12 financial indicators (current ratio, quick ratio, equity ratio, receivables turnover, current asset turnover, total asset turnover, operating margin, net profit margin, return on total assets, total asset growth rate, net profit growth rate, net asset growth rate) as research variables, using factor analysis, the article analyzes the solvency, operation performance, profitability, growth capability and overall competitiveness of these 87 listed companies.
Highlights
Since the reform and opening, Chinese economy has obtained considerable progress
Other electronic equipment manufacturing, electrical machinery and equipment manufacturing), 10 listed companies belong to software and information technology services, and the remaining 16 listed companies belong to other sectors
There are totally 4 factors with eigenvalues of more than 1, their cumulative contribution rate was 89% > 85%. This result meets the requirement of cumulative contribution rate. These four factors are selected: The principal component F1 is mainly used to explain current ratio, quick ratio, equity ratio, which mainly reflect the solvency of listed companies
Summary
Since the reform and opening, Chinese economy has obtained considerable progress. China’s capital market has gradually improved. The competitiveness of 355 listed companies in China’s GEM was studied by Liu Hongjie, Wang Shuwei (2015) [10]. Private capital loves to invest in high-tech enterprises, because these growth-oriented enterprises are the promoting drivers of China’s industrial structure upgrades. Based on the 2016 annual data, this article studies the competitiveness of 87 listed companies, who initially went public on China’s GEM in 2015. Taking 12 financial indicators (current ratio, quick ratio, equity ratio, receivables turnover, current asset turnover, total asset turnover, operating margin, net profit margin, return on total assets, total asset growth rate, net profit growth rate, net asset growth rate) as research variables, using factor analysis, the article analyzes the solvency, operation performance, profitability, growth capability and overall competitiveness of these 87 listed companies
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