An Empirical Study On The Sustainable Development Of Chinese Private Enterprises

This paper focuses on the influencing factors of the sustainable development of Chinese private enterprises (CPEs) and the mechanism of the influence. We attempt to develop a systematically analytical framework which is based on the empirical analysis. The related sectional data of year 2008 of 468 listed private companies and the data from the"Chinese statistical yearbook"are collected. For the purpose of providing some help for the government and the managers of CPEs, we applied such classical and modern methods of econometrics as the multiple regression (MR), structure equation model (SEM), principal component analysis (PCA) and cluster analysis (CA) to fully analyze the main factors which have influence on the sustainable development of CPEs in depth. Not only the single and combined impact of these factors is analyzed, but also the mechanism of them is studied.The main contents and results are as follows:(1) Inspect the macro-circumstance. we used the related panel data of year 2005 to 2007 from the"Chinese statistical yearbook", and forwarded a MR model based on the neoclassical growth theory to analyze the overall influence of macro-economical elements, such as the capital, labor, foreign directly investment (FDI) and the government owned enterprises (GOEs) on the sustainable development of CPEs and the regional distribution characters of them.(2)Evaluate the sustainable development of CPEs. According with the modern research on this area, we redefined the sustainable development of CPEs scientifically. Referring the modern financial management theory, an evaluation model based on the ability to make profit, ability to reimburse, ability to grow and operate is constructed.(3)Analyze the internal influencing factors. Considering the object of this research and the availability of the data, we analyzed the factors such as human resource, capital structure and the strategy of the company and their indicators individually with MR.(4) Analyze the external influence factors. The environment, especially the policy environment, is one of the most important forces influence the CPEs'sustainalbe development. But because of the difficulty of collecting the data of that from the sample, we take the tax for example, and chosen the macro-data from the"Chinese statistical yearbook". With the method of classifying analysis, we compared the fairness between different industries, different areas, and the GOEs, FDI and CPEs. Also we tested the efficiency of tax.This paper's innovation could be: First, we proposed the GOEs'spillover effect to CPEs, and the FDI has only a piece of that effect; the FDI has showed some squeeze-out effects. It breaks the former impression that GOEs has the squeeze-out effect and FDI has spillover effects to CPEs. Second, we found the internationalization is related as a U shape to the sustainable development of CPEs, and there is a significant cross impact between multiplication and internationalization. Third, we created a new concept of"company's ratio of tax per profit unit"and gave the formula of calculation. Based on this, we empirically validated the efficiency and fairness of tax for different areas, industries and ownerships of companies.