The Study On Financial Evaluation Of Sustainable Growth Of Small And Medium Enterprises In Jiangsu And Zhejiang

This paper mainly uses empirical research methods, and selects 66 small and medium enterprises in Jiangsu and Zhejiang as the research sample.Based on data from 2005 to 2010 of these enterpises,this paper does a study on financial evaluation of sustainable growth of small and medium enterprises in Jiangsu and Zhejiang from five aspects.Firstly,this paper carries on combing the theoretical research on the sustainable growth in our financial fields , and emphatically introduces a number of ways about evaluation on sustainable growth of the listed companies,then analyzes the financial factors for sustainable growth.From the analysis about the evaluation of sustainable growth of small and medium enterprises in Jiangsu and Zhejiang, after made reference to research on selection experience in financial ratios of the sustainable growth ability in the domestic and foreign related research,this paper selects 12 financial ratios,such as the net profit margin,ROE,ROA,current assets turnover,inventory turnover,current ratio, liability/asset ratio,net operating profit index,index of operating revenue,operating cash flow return on assets,growth rate on total assets,capital maintenance and appreciation ratio and so on.Then from five areas in profitability, operation capability, debt-paying ability, cash flow, growth capacity ,this paper builds a financial evaluation system about sustainable growth ability of listed companies in Jiangsu and Zhejiang.In the empirical analysis, this paper uses factor analysis to demonstrate the key factors about sustainable growth of small and medium sized enterprises in Jiangsu and Zhejiang .The empirical results show that the capacity for sustainable growth about small and medium sized enterprises in Jiangsu and Zhejiang is mainly decided by the profitability and a positive correlation with profitability.Small and medium sized enterprises in Jiangsu and Zhejiang capacity for sustainable growth is also affected by the debt-paying ability of the more obvious and positive correlation with the relationship between the debt-paying ability.Because asset-liability ratio was due to positive treatment, small and medium sized enterprises in Jiangsu and Zhejiang capacity for sustainable growth and the current ratio is positively correlated ,and with the liability/asset ratio is negatively correlated. Sustainable growth of enterprises and business growth is related to relationship. Operational capacity of small and medium business enterprises in Jiangsu and Zhejiang sustainable growth ability is not very significant. Meanwhile, cash flow and small listed companies in Jiangsu and Zhejiang are closely related to the sustainable growth.Finally,using cluster analysis, small and medium sized enterprises in Jiangsu and Zhejiang capacity for sustainable growth should be divided into three categories.Then this paper establishes small and medium sized enterprises in Jiangsu and Zhejiang capacity rating standard for sustainable growth.From the empirical analysis,we find that,in the 66 sample companies, only three were rated as grade 1, 31 were rated 2, 32 were rated 3. This is consistent with the previous analysis that the majority of small and medium sized enterprises in Jiangsu and Zhejiang hasn't achieved sustainable growth. Through the sample test showed that this model of sustainable growth ability of listed companies has some predictive value. This article hope that this established evaluation system for sustainable growth of small and medium sized enterprises in Jiangsu and Zhejiang is valuable to evaluate the sustainable growth of listed companies in Jiangsu and Zhejiang and is helpful to evaluation securities market regulators, investors, managers of listed companies as well as government.