The Study On The Sustainable Growth Of Listed Companies From Managerial Entrenchmet Perspective

As a worldwide trend of economic development, the sustainable growth is built on asustainable basis of the social and economic growth. Meanwhile, it is a performance of thehuman society’s continuous development. To study the enterprise’s sustainable growth ability,you can find out the relevant affecting factors, provide the appropriate policy about thebusiness operations, help companies find the reasons for the weakness of the businessdevelopment capacity efficiently and draw recommendations to promote the proposaldevelopment of the enterprise. What’s more, the enterprise could combine these policyrecommendations with its actual situation, and then make a reasonable and effective businessmanagement strategy. This passage analyzes the enterprise’s sustainable growth ability fromthe defense perspective on Managerial Entrenchment. Although in recent years, with theenterprise managers’ managerial entrenchment increasingly becoming common, there are alot of scholars make many studies on the aspects about how the enterprise managers’managerial entrenchment make influence on corporate defensive behaviors, the existingliterature still focuses on the relationship between the study of enterprise managers’managerial entrenchment with the company’s internal characteristics mostly, with littleresearching on the impact of enterprise managers managerial entrenchment for theenterprise’s sustainable growth ability, which is a study gap of sustainable growth’s relevantaffecting factors. Analyzing the enterprise’s sustainable growth ability from the defenseperspective on Managerial Entrenchment, we can find a more comprehensive and fruitfulaffecting factors related to the ability of sustainable growth, make the listed companies findthe key points affecting the development of enterprises accurately, and finally promote thehealthy and stable development of China’s the listed company effectively.In this study, the theories of business management and the sustainable growth of thedefense are summarized. This passage proposes appropriate assumptions from analyzing therelevant relationship between the aspects of manager’s features, manager’s incentives,manager’s supervision and the sustainable growth in defense capabilities. Using empiricalmanagement to study A-share issued stock market data of listed companies in Shanghai andShenzhen of China’s listed companies in three consecutive years from2011to2013, we canconclude the relevant relationship between Managerial Entrenchment of China’s listed companies and the enterprise’s sustainable growth ability. The study includes:(l) a significantpositive correlation between the manager’s remuneration and sustainable growth abilitywhich performs the fact that the higher of the manager’s remuneration, the lower the degreeof management’s defense, and the better of the company’s growth.(2) Small impact that theage of the listed company’s managers taking on achieving the enterprise’s sustainable growthability, but a actual negative correlation between the age of the listed company’s managersand the enterprises’ actual growth rate. What’s more, there is a positive correlation betweenthe manager’s educational background and sustainable growth, but without a significantrelationship with the actual growth rate; and it also does not exist a significant relationshipbetween the ratio of independent directors and sustainable growth. This passage analyzes thereason for the assumptions’ failure, and finally proposes the policy recommendations ofdesigning science incentive mechanism, strengthening internal audit, establishing a soundmarket about the managers.