| Many companies always ignore the risk that it could take under an extraordinary situation. They think it is a good chance to grow fast. Fast growth may take the high profits, but it usually accompanies high risks. The company pursues the economic benefit, so they could not give up pursuing the growth for avoiding risk. So, these issues have been noticed:How to make a company exist for long, and develop sustainable? How to control the growth of a company to avoid the financial risk? Is there a kind of growth sustainable? What is the relationship between sustainable growth and financial risk? Is there a way for us to use the early warning financial risk model to control the speed of the growth for sustaining its sustainable growth?Firstly, expounds the theories about the relationship between sustainable growth and financial risk viewed qualitative, based on the theories of sustainable growth and early warning financial risk.Secondly, do an empirical research for the sustainable growth situation of pharmaceutical manufacturing listed companies during 2004-2008 using the classical Higgins sustainable growth model and Wilcoxon signed ranks test. The result shows that, this industry has not to achieve sustainable growth during 2004-2008. Then calculate the "Z- score" of the samples using Altman's Z-score financial risk model, and make a.described statistical analysis briefly.At last, do an empirical research for the relationship of sustainable growth and financial risk of pharmaceutical manufacturing listed companies using the dominating ingredient analysis method. The result shows that, there is a positive relationship between the sustainable growth and financial risk. The company could adjust the financial policies and strategies using the result of the early warning financial risk model to sustain its sustainable increase. And also get a result of that, there has four factors influence the sustainable growth of the pharmaceutical manufacturing listed companies. |
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