Study On Growth Management Of The Liquor Listed Companies In China Based On Financial Perspective

Chinese liquor industry, which seems to be a part of the representative of Chinese civilization, has a very long history in China. Furthermore, liquor listed companies, which is regarded as the typical representative of the productivity of Chinese liquor industry, play a remarkable role in the development of Chinese liquor industry. Therefore, whether liquor listed companies could realize sustainable growth may greatly affect the sustainable development of the whole Chinese liquor industry. Moreover, currently, Chinese liquor industry has experienced the significant change due to the intense competition as well as the crackdown on excessive public expenditure on receptions. Under the circumstances, the study on growth management of the liquor listed companies in China may contribute to the healthy and sustainable development of Chinese liquor industry.Based on empirical data from China’s liquor listed companies, this paper aims to examine the present situation of growth management of liquor listed companies in China. Firstly, this paper provides an overview of the current research on enterprise growth management. Secondly, this paper analyzes the external factors, which may profoundly affect the sustainable growth of liquor listed companies, namely, the macro environment and current industry status. Thirdly, this paper examine whether liquor listed companies in China realize the sustainable growth over the period 2007 to 2013 bases on the model of Van Horne. This paper selects 11 liquor firms listed on Shanghai Stock Exchange and Shenzhen Stock Exchange over the period 2007 to 2013, collectively providing approximate 77 observations.The empirical results suggest that liquor listed companies in China almost realized sustainable growth. However, there are still some hidden dangers, which should be taken into consideration seriously, and some companies need to improve their growth management. Furthermore, in order to offer some practical suggestions for liquor listed companies, a further investigate on the defects of individual company in terms of growth management is achieved by the case study on two different types of companies, namely excessive growth and insufficient growth.