Empirical Study Of The Effect On Enterprise Growth Of Chinese Manufacturing Listed Companies That Imposed By Enterprise Size And Ownership Structure

In the condition of financial crisis, enterprise growth has been a widespread topic. Although there have been a lot of theoretical and empirical researches on the effect of enterprise size or ownership structure on enterprise growth, there may be different results in the test where the enterprise size and ownership structure are tested together, as there are complex relation between these two factors. What's more, although there have been lots of researches based on the sample of developed countries'manufacturing industry, there is few researches based on the sample of Chinese manufacturing industry. Therefore, this paper designs the research on the basis of literature review and theoretical interpretation, using 627 listed companies of Chinese manufacturing industry in 2006-2008 as sample to verify the research hypotheses.This paper gets the following conclusions through correlation analysis and multiple regression analysis to all samples:enterprise size has positive effect on enterprise growth; there is a U shaped relation between the shareholding proportion of the first-largest shareholder and enterprise growth; the ownership concentration ratio has a reverse U shaped relation with the enterprise growth; and the ownership restriction ratio has no significant effect on enterprise growth. Therefore Government and relevant departments should treat all the enterprises equally without discrimination or pay more attention to small enterprises in establishing the issues of finance, tax and so on, so as to balance the differences between the obtaining abilities resources in of large and small enterprises. At the same time, we should perfect the law system to make a good environment for the growth of enterprises, and keep the shareholding proportion of the first-largest shareholder at a very high or very low level, so that by inspiring the enthusiasm of the leading shareholders, reducing the asymmetric problems or by averting interest occupation and perfecting corporate governance system to promote the growth of enterprises. We should also keep the ownership concentration ratio appropriate, so that we could assure the inspiration and supervise of CEO and avert the interest occupation of the leading shareholders on small shareholders. In addition, enterprises need to improve the incentive mechanism by using the options, so as to reduce the operator's short-term behavior and the oversight cost of the owner.This paper gets the following conclusions through correlation analysis and multiple regression analysis to the samples of sub-industry:there are significant differences among the effects of enterprise size and ownership structure on enterprise growth of different sub-industry, Gibrat's Law is not applicable in each sub-industry. The effects of ownership structure on enterprise growth in different sub-industry are heterogeneous, the heterogeneity should be considered carefully when establishing related issues, and the issues should set by analyzing the different environment factors of different sub-industry.