The Study Of The Small And Medium-sized Listed Companies’ Financial Sustainable Growth Ability

Since the opening of China’s SME(small and medium-sized) board panels, ithas committed to serving those comparatively mature small and medium-sizedenterprises. It provides an equity financing platform for those SMEs that are in needof funds, and also increases the chance of investors to list investments. In addition, itcan promote small and medium enterprise board listed companies establishing afavorable corporate management system. These all provide a good platform for thedevelopment of small and medium enterprise board listed companies. However,comparing to those well-funded large-scale enterprises with strong balance-sheets,these small and medium enterprise board listed companies are often in the formativeyears, a period accompanied by a variety of risks. Previous studies showed that thelevel of financial indicators such as total asset turnover rate, cash ratio, sales growthrate, sales margin rate have a significant impact on the main board listed company’sability of financial sustainable growth. So this paper is going to launch studies anddiscussions on whether these relevant financial indicators can affect the corporatefinancial sustainable growth ability in the development process of these small andmedium enterprise board listed companies, and which financial indicator has thelargest impact on this capacity for sustainable development.In this paper, I take existing relevant outcomes about the enterprise sustainablegrowth ability as a reference, and expand research on the corporate financialsustainable growth ability from the theoretical analysis and empirical research aspectrespectively. This paper carries on the preliminary elaboration to domestic andforeign research results related to enterprise financial sustainable growth at the beginning, explains the basic theory about the research of enterprise financialsustainable growth, and then discusses the current situation of China’s small andmedium enterprise board listed companies. In the empirical analysis part in thispaper, I selected49companies listed in the small and medium-sized enterprisesboard as data sample, based on previous system that evaluates corporate financialsustainable growth ability, combined with the overall features of China’s small andmedium enterprise board listed companies, selected10relevant financial indicators,established a framework to research small and medium enterprise board listedcompanies’ financial sustainable growth ability. I collected2012annual FinancialReport of the49sample companies, adopted factor analysis to establish a dataanalysis model, in addition, used SPSS17.0software to calculate the individualimpact factor score and comprehensive score of each small and medium enterpriseboard listed company, and ranked for each company by scores to quantitativelyanalyze the factors affecting small and medium enterprise board listed companies’financial capacity for sustainable growth, and to determine the extent of its impact.Empirical studies show that the debt repayment factor which represented by quickratio, cash ratio and liquidity ratio has the largest impact on financial sustainablegrowth capacity, and the second factor is the expansion capacity, operationalcapability and profitability also have impacts of different degree. According to theconclusions of the analysis, the paper gives some constructive comments on how toimprove the financial sustainable growth capacity for small and medium enterpriseboard listed companies at last.