Enterprise Growth And Operating Liabilities

Modern corporate finance theory has developed into a mature financial theory, and played the Theories Guiding Practice role in various countries’ corporate financing behavior. Scholars in the study of the debt financing less took into account the heterogeneity of the debt sources. This article based on the heterogeneity of the debt sources-operating liabilities and financial liabilities from different sources, used the theory of capital structure and corporate finance combined with the actual situation of China’s listed companies in the debt structure, analyzed the relationship between the company’s growth and operating liabilities in order to provide a valuable theoretical and empirical evidence for reasonable and effective configuration of China’s enterprises sources of debt financing.In the study of the relationship between company’s growth and operating liabilities, previous literature mostly treats company’s growth as an exogenous variable, consider there is static relationship between the two factor. This article study a sample of770listed companies in the A-share market board between2006and2010, using static data model and the dynamic data model, inspect the relationship between company’s growth and operating liabilities. In the static model, the current period or the lag one period company’s growth have a positive impact on the current period operating liabilities. After using dynamic data model to control the endogeneity problem, we find that the current company’s growth did not have obvious promotion effect on operating liabilities, but hinder it. This impediment was not significant. Lag one period company’s growth significantly have a negative impact on current operating liabilities. This shows the existence of intertemporal link between company’s growth and operating liabilities. Upgrade of the company’s growth does not necessarily lead to the increase in operating liabilities. In other words, the company’s growth has a significant positive impact on the operating liabilities in the short term, but this effect is not significant in the long run.