Empirical Study Of The Impact Of Operating Assets Quality To Enterprise Growth Ability

In recent years, with the development of market economy, China’s listed companiesare growing. How to maintain business growth ability is always the central issueconcerned within and outside of the companies. Growth has also been mentioned moreand more in the management’s motion. As the important part of business assets,operating assets determines the development potential and competitive advantages ofenterprises, especially for manufacturing companies. So studying the affect of operatingassets quality to enterprise growth ability is meaningful.This paper combines literature and empirical research methods. On the basis of fullyabsorbing and learning domestic and foreign study of asset quality and enterprise growthability, this paper does theoretical analysis. Then it does empirical study of therelationship between operating assets quality and enterprise growth ability.This paper is divided into five parts, the main contents are as follows:Part1is introduction. It introduces the research background, research value,research content and methods, as well as innovation of this paper. It generalizes domesticand foreign study from operating assets quality, enterprise growth ability and the affect ofoperating assets quality to enterprise growth ability. On the basis of reviewing therepresentative literatures at home and abroad, this part points out some problems in thepresent researches, which establishes the starting point.Part2is theoretical analysis. At first, it analyses the meaning of operating assets,operating assets division and operating assets quality characteristics; Secondly, itintroduces the meaning of growth ability and the evaluation of growth ability includingfinancial indicators and non-financial indicators; lastly, it analyses the affect of operatingassets quality to enterprise growth ability and introduces enterprise resource growththeory.Part3is empirical study design. It selects financial data for the2010-2012of240C7listed manufacturing companies of A-share market as sample. It selects10enterprisegrowth ability evaluation and14operating assets quality evaluation. Through factoranalysis of these indicators, it gets one composite index of growth ability, one compositeindex of operating assets quality and five two-distinction indexes of operating assets quality. On the basis of this, it proposes hypothesis and builds multiple linear regressionmodel.Part4is empirical test. At first, it does K-S test. The result shows that otherindicators are not normal distribution in addition to the capital structure of the controlindicator. Secondly, it does descriptive statistics and Mann-whitneyU test. At the sametime, as a supplement for descriptive statistics, it does analysis through averaging threeyears scores of operating assets quality for these240enterprises. At last, it does multiplelinear regression test. According to the test result, it does test through dividing thesesamples into large companies and small companies.Part5is conclusions and suggestions. It gets study conclusions according toempirical result. Then it proposes suggestions to management of manufacturing listedcompanies. At last, it puts forward the prospect of the future research according to thispaper’s limitations.I can get the following conclusion after the study: Composite indicator of operatingassets quality, turnover indicator, profitability indicator and authenticity indicator aresignificantly positive correlation with enterprise growth ability; Fixed assets indicator isweakly negative correlation with enterprise growth ability; Realizability indicator isweakly positive correlation with enterprise growth ability; The contribution of smallcompanies’ operating assets quality to enterprise growth ability is larger. At the sametime, the correlation is more obvious. So, for C7manufacturing listed companies seekingbusiness growth, they should strengthen the focus on operating assets quality.