| Firm growth is the problem that managers, investors and other stakeholders always pay attention to. It also represents firm future value. Being one of targets that firm trying their best to pursuing, growth becomes increasingly the focus that theorists pay attention to. Growth is a comprehensive character that is embodied in firm operating management and development trend. Analyzed from finance, a growing firm should have such characters as reasonable capital structure, predominance in the same industry and size increasingly expanded, cost and expense controlled well, better market competition capability, operating performance promoted steadily in future.Being compared to foreign scholars, domestic scholars use less science statistical analysis approach to research the growth of stock-listed companies. There are minority scholars who do the correlative researches about growth, but they only extensive draw their conclusions in which there are positive or negative correlation between dependent variables and independent variables. In addition, more scholars regard the firm growth as independent variable in empirical research of stock-listed companies financial field problems and analyse how firm growth effects on other factors. Encircling firm growth problem, foreign scholars do a lot of empirical researches, but their empirical research outputs aren't consistent. Based on research of foreign and domestic scholars about firm growth and combining domestic practical conditions, this paper attempts to research how leverage effects on growth for domestic stock-listed company under different operating performances from financing point.Main contents of this paper include four sections:Section one: Theory analysis Modigliani and Miller (1963) considered debt could bring tax profit for the company in their revised MM theory, because debt interest that company paid can be recorded as cost and deducted before tax, but dividend and retained earnings can be taxed, company could get tax shield effect from tax reduction due to debt interest, its present value is equal to total debt multiply tax rate. Based on agency problem, Jensen and Meckling (1976) thought debt can reduce equity agency and improve firm value. Though debt can bring tax profit, it can generate risk and additional expense at the same time. Trade-off theory considers that return on equity can improve along with increase of debt when firm has better operating performance, while debt makes return on equity decline as more quick speed and risk of loss becomes great when firm has worse operating performance. Thus, the probability of falling into financial distress and bankruptcy could ascend and bankruptcy cost and financial distress cost and correlative agency cost can increase correspondingly.Section two: Select research data and design correlative research variablesThis paper collects their financial reports from 1998 to 2001 and screen out total 2798 samples as panel samples. This paper selects return on equity (roe) and earnings per share (eps) as the criterion that classifies the operating performance of stock-listed company into two groups. At the same time, this paper selects sales growth rate and equity growth rate as dependent variables and leverage as core independent variable, selects size, selling, general & administrative rate, risk, net income rate, assets guaranty value as controlling variables. Based on these variables, this paper constructs multiple linear regression model and uses it to do empirical research for panel samples. In addition, this paper also makes industry and year dummy variables to introduce to linear regression and explores industry and year effect on firm growth.Section three: Analyse empirical outputsThis paper uses single index, roe or eps, to classify the operating performance of stock-listed company into two groups. This paper defines roe>0 or eps>0 as good performance, roe≤0 or eps≤0 as bad performance. Then, this paper respectively uses multiple linear regression to research the two groups o...
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