| Popis: |
SMEs(small and medium enterprises) are the very critical strength to drive the development of national economy. China has set up the SME Board in order to guarantee the stable and continuous growth of the SMEs, and then the research in this field has become very hot for the research of SMEs. Based on the introduction of SMEs' growth and their growth drivers, this paper uses multi-regression and panel regression methods to make the empirical analysis of growth drivers of listed companies in China's SME Board. The results reflect the effect of size is higher than other growth drivers. With regard to the effects of financial ability, growth ratio of major business is taking the lead. Keywords-SME Board; growth driver; free cash flow I. INTRODUCTION SMEs are the very critical strength to drive the development of national economy. China has set up the SME Board in order to guarantee the stable and continuous growth of the SMEs, and then the research in this field has become very hot for the research of SMEs. China's SME Board is designed for SMEs by the Shenzhen Stock Exchange for the purpose of boosting the capability for independent innovation. The SME market came into shape on June 25, 2004. At the end of May 2008, there are 248 stocks on the SME Board, which account for 10% of the listed companies at the Shenzhen Stock Exchange. The SME Board focuses on hi-tech non-state-owned enterprises with conspicuous advantages of regional economy, transparent shareholding structure and flexible mechanisms. In addition, these companies are also characterized by strong profitability and high growth. In terms of investment strategies, the SME Board Index is not much correlated with the main board index and their volatilities do not show significant synergetic effect. Therefore, the identification of growth drivers of listed companies in the SME Board will enable investors to develop their portfolio correctly and to diversify their risks effectively. Currently, the mainstream SME research focuses on factors that contribute to their survival such as financing, rather than a greater understanding of the growth process and the achievement of sustainable competitive advantage (Storey, 1994)(1). The majority of the literature focuses on large firms and there is a dearth of research on high growth smaller organizations (Sexton and Smilor, 1997) (2). The literature suggests that a number of attributes are |
