An Empirical Study On Equilibrium Relation Between Sustainable Growth And Three Capability Of Chinese Listed Companies

This paper introduces the theory of sustainable growth of companies and meanwhile thoroughly analyzes the subjective and objective factors affecting sustainable growth of listed companies in China.Then with the sample of Chinese A-stock listed companies which appear on Stock Exchange of Shanghai and Shenzhen before 1994,using sustainable growth model brought forward by Robert Higgins and James Van Herne and the mathematical statistic methods of means and Wilcoxon.This paper tests the sustainable growth status of all sort of listed companies in China during the period from 1994 to 2000.Meanwhile an empirical analysis is made in this paper by the factor method and regression to find out equilibrium relation among sustainable growth of Chinese listed companies profitability capability of debt-repayment and capability of operation. At last this paper puts forward some advice by examining the present situation and the unsettled problems of sustainable growth of the listed companies in China.This paper includes five parts,In the first part,it introduces the research purpose and the present situation of domestic and overseas,In the second part,it introduces the theory of sustainable growth of companies and analyzes the composite factors of sustainable growth of listed companies in China,In the third part,it tests whether Chinese listed companies realize the sustainable growth or not. In the fourth part,it makes an empirical analysis on the principal components of sustainable growth of listed companies in China,In the fifth part,it describes the present situation and the unsettled problems of sustainable growth of the listed companies in China and put forward some advice. This paper discover:(1)If the growth rate in sales revenue and sustainable growth rate are inconsistent,the asset-debt ratio is out of control. That is,the sustainable growth fails to be fulfilled.(2)The electronic industry has seen the sustainable growth,while the others haven't.(3)Investment in light industry and agricultural listed companies is inadequate,whereas in others it is excessive.(4)The sustainable growth rate of a listed company is in inverse proportion to asset-debt ratio,but in direct proportion to current debt ratio as well as acid test ration(5)There is a positive correlation between the sustainable growth rate of a listedcompany and its profitability. That's to say,the higher earning rate,the higher sustainable growth rate.(6)The sustainable growth rate of all listed firms other than those of the commerce industry is positively correlated to the growth capacity.(7)Apart from the commerce industry,there is a positive correlation between the sustainable growth and the operation capability of the listed companies,regardless of their integral sample,industries sample and scale sample.