An Empirical Study On The Relationship Between The Enterprise’ Speed Of Growth And Quanlity Of Growth

Abstract:At present, the trend of the international economic growth is not only paying attention to the increase of the growth quantity but also to its coordinated development with social stability, environmental endurance, sustainable development and other aspects. Under this economic environment, enterprises being one economic component should also follow this trend. Therefore, based on the background stated above, this paper puts forward the concept of the quality of enterprises’growth and also analyzed the relationship between enterprise growth quality and enterprise growth rate.The enterprise growth rate stated in this paper refers to the growth rate of main business in the financial sense, while the enterprise growth quality described as profitability, robustness, financial flexibility, value and sustainability, and measured by the composite scores, which is calculated by the statistical software. Through regression analysis of the samples of manufacturing company, we found that the two have strict "inverted U" shaped curve relationship, which means that, at the beginning of the development, the enterprise growth quality will improve as the growth rate increases, when the enterprise growth rate reaches a certain level,the enterprise growth quality also reaches the highest level. But, after that, enterprise growth quality will reduce as the growth rate increases. Therefore, this research hypothesis-the relationship between enterprise growth rate and the enterprise growth quality was "inverted U" shaped relationship has also been proved.Next, through mathematical analysis of the research model, this article also obtains the range of the best enterprise growth rate corresponding to the highest point of the "inverted U" shaped curve. At the same time, through analyzing the elasticity of the two factors, we also obtained the conclusion that with the increase of enterprise growth rate, the sensitivity of the enterprise growth quality to the changes of growth rate decreases continually, namely, trying to improve the enterprise growth quality by accelerating growth rate is becoming more and more inefficient. Therefore, when we accelerate the growth rate of enterprises, we also cannot ignore the improvement of the quality of growth.