An Empirical Study On Financial Sustainability Of Software And Information Technology Services

Since 1990, with the continuous innovation and development of service industry of software and information technology, it has gradually become a golden industry which is high-tech and of high added value. With the implementation of the strategy of innovation-driven development,innovation stands for the vitality and potentials of the industry.The service industry of software and information technologyis not only theamulet for developing countries and developed countries to maintain economic growth,but alsothe coupling effects it producescould stimulate and enhance the development of other industries,thus effectively stimulating domestic demand andcreating new sources of economic growth . Therefore, the whole industry has playeda strategic supporting role in the national economy by contributing to social development and dealing with global competition.On the background of global integration,in order to stand out from the fierce competition,companies have to expand. However, the expansion needs financial support,so corporate growth will naturally give rise to the growth of demand for capital. When enterprises expand rapidly, corporate sales growth will lead to the rapid growth of inventory and accounts receivable,thus enterprises will need more capital for turnover.Therefore, the growth for the enterprises is a double-edged sword.If the growth of enterprise can not match corporate's financial resources, it may cause financial crisis and thus can not guarantee the stability and health of business growth. If the enterprise does not take the financial limit into consideration, blind pursuit of excessive growth might be counterproductive. To ensure the healthy growth of enterprises,appropriate sales growth rate have to be determined based on the financial condition of the enterprise and the macroeconomic environment.That's how the sustainable growth model works.On the basis of sustainable growth model, we can know whether the current growth of enterprises is healthy, the use of capital reasonable.Besides, decision-making of the board will be more theoretically based and favorable for the future development of business .First of all, this paper focuses on the classical theory of sustainable growth model, and analyzes the driving factors and the sustainable growth model which influence the sustainable growth rate.In the end, we come to the conclusion that maintaining the financial sustainable growth of enterprises is of great significance to the financial stability of enterprises. If the enterprise grows too fast, it will cause the financial crisis ;if the enterprise growth is insufficient,the financial resources can't be taken advantage of properly which is a waste.To maintain sustainable growth,we have to take into account the efficiency and quality of growth.So this paper uses data of the services industry of software and information technology from 2011 to 2015 to calculate the sustainable growth rates and real growth rates of the companies,and then compare them with each other;take advantage of Wilcoxon Signed Rank Test to analyze the growth of the industry. Lastly we use factor analysis to extract the common factors that affect the sustainable growth rate of the industry, and give some financial advicebased on the regression analysis.