Journal of Small Business and Entrepreneurship Development

Financial Performance of Listed SMEs: A Comparative Analysis between China and America
Xuezhou Wen, Daniel Quacoe, Ann Dodor, Dinah Quacoe, Isaac Asare Bediako

Abstract
In this paper, we mainly study the financial performance of listed Small and Medium-Scale Enterprises (SMEs) on Shenzhen Stock Exchange (SZSE) Small Business Board in China and New York Stock Exchange MKT (NYSE MKT) in America. We institute unit root test, co-integration and Granger causality tests to analyze our panel data. Through unit root, we found that, the financial performance of SMEs listed on NYSE MKT in US and on SZSE SME Board in China were all not stationary. Our co-integration analysis showed that, the financial performance of SMEs on these stock markets had long-run relationship. In addition, financial performance of SMEs listed on SZSE SME Board does not differ statistically significant from SMEs listed on NYSE MKT and vice versa. On the whole, our results give us cause to reject the null hypothesis that financial performance of listed SMEs in developed stock market does not influence the financial performance of listed SMEs in developing market and vice versa.

Full Text: PDF     DOI: 10.15640/jsbed.v5n2a5