The Research Of Correlation Between China's Listed Company's Sustainable Development And Financing

Firm is elementary unit of microeconomics. Company's growth determines the development level of GDP. Listed companies as the superiors are of significance to economic development. But blind growth is false. According to foreign research, bankruptcies due to over-speed are almost the same as the bankruptcies due to over-slowness. Sustainable growth is defined as the maximum ratio that company sales can approach when company does not exhaust its financial resource. Growth means capital's growth in financial sense. With the development of capital market, companies can finance with commercial credit, short-term loan, long-term loan, bonds and stock equity. Which have different effect on company's growth performance. In the context of the present capital markets, it is very manful to research the relation between listed company's sustainable growth and financing.The research methodology is mainly empirical research. This article consists of five chapters. Chapter I is the preface, chapter II is the literature review, chapter III explains the relations between sustainable growth and financing, chapter IV is this article's emphasis. I give an empirical research on financing policy and its effect. Chapter IV gives a regression analysis on the relation between the increment of financial resource and sales growth, and explains the empirical result. Chapter V is the research conclusions and policy suggestions, and points out the research limitations. The article indicates:(1)Retained earnings are positive relative to sales growth of super quick growth and super slow growth.(2)The increment of long-term liabilities is positive relative to sales growth.. (3) Current liabilities are positive relative to sales growth of super quick growth companies, but it is negative relative to super slow growth companies. (4) The former equity financing has no role for current sales growth.. Current equity has no role for super quick growth companies, but has significant role for super slow growth companies. These phenomena show the distortion of equity financing functions.According to the conclusions above, some suggestions on the supervisory of equity markets are as follows: Strict license system to normalize the behavior of listed companies; superiors should be put to listed companies on the limitations and management of dividend policy; measures should be taken to embrace long-term bond financing.