Growth Mode And Corporate Performance

Recently, the problem of growth has already become the focus of attention. Government hopes growth, shareholders demand growth, the managers of the company pursuit growth. It has been recognized the importance of growth. In financial management activities, growth management has become an important and special work. Growth management is an important part of decision-making and enterprise performance evaluation.As far as an enterprise is concerned, growth is its instinctive demand,but it is not to say that growth is without limit. Growth will inevitably bring about capital needs. According to different sources of funding, the growth modes of enterprises are divided into three categories: slow growth, sustained growth and speeding growth. Slow growth mainly relies on internal funds to achieve growth. In the sustained growth mode, the financial structure and financial risk remain unchanged. Speeding growth is mainly due to external funding to achieve growth. Different growth mode led to the change f the company's capital structure. Capital Structure is an important factor that affected corporate performance. So the growth pattern of the different options will have an impact on the performance of corporate. This paper chooses the listed company from Shanghai and Shenzhen stock market as a research object, collecting and cleaning up the data, designing the correlated variable and confirming the logic relationship of it. Regression analysis and correlation are used to test the relation between growth mode and performance.The thesis can be divided into five sections:The first section is the introduction. In this section, the author mostly reports the background of the research, the aim and significance of the research, and finally the methodology and technique. In the second section, the basic theory and literature review, which are about the growth of enterprise and corporate performance, are summarized. The third section explains the relation between growth mode and performance, and the author puts forward the hypotheses of this paper. The fourth part is the design for the research. ROA and Tobin's Q are used to describe the performance of sample companies. Slow growth, sustained growth and speeding growth are used to describe growth mode of sample companies. In addition ,scale of asset, rate of debit on assets, the proportion of circulating shares, the holding proportion of first large shareholder are control variables. The empirical study was carried out by STATA software. The fifth part is empirical research analysis and conclusions. This part describes the process of the research and analyzes the results. Regression analysis and correlation is used to analyze the relationship between the growth mode and corporate performance. Some results have got, including: as a whole, growth mode has a positive correlation with the performance of listed companies. Corporate performance that adopted by sustainable growth mode is the best. Tobin's Q has better response to the risk which contained in different growth mode than accounting performance indicator ROA. Tobin's Q is more efficient than ROA. Under the sustained growth mode, the actual growth rate has a positive correlation with corporate performance.As an article with empirical study, this paper has limitation that empirical analysis has. At the same, because of the author's researching abilities, this paper is not enough and there are still many questions need to be resolved.