The Intertemporal Interaction Between Beyond-sustainable Growth Rate And Financial Performance Of Chinese Listed Real Estate Enterprises

The existing literature tends to focus on how companies conduct sustainable development and the design of sustainable growth model,but ignore quantitative research on deviations between actual growth rates and sustainable growth rates,as well as their economic consequences.By defining beyond-sustainable growth,the difference between this year's real growth and previous year's sustainable growth,this thesis studies interaction and hysteresis effect between beyond-sustainable growth and financial performance,namely the intertemporal interaction between beyondsustainable growth and financial performance.Firstly,this thesis discusses the connotation,model selection and the correlation with financial performance of beyond-sustainable growth.Taking the real estate enterprises listed in Shanghai and Shenzhen Stock Exchange from 2006 to 2015 as research samples,this paper proposed six assumptions about beyond-sustainable growth and financial performance.Through the overall entropy method,composite scores of financial performance are calculated in profitability,solvency,operation,growth capacity.Secondly,after comparing and analyzing various statistical methods,it is determined that the generalized method of moment estimation(GMM)is more suitable to study dynamic panel model,and two methods of GMM are tested.Results show that system GMM method is more effective than differential GMM method,which is discarded for failing to meet established premises.Finally,the regression analysis of the relationship between beyond-sustainable growth and financial performance shows that current beyond-sustainable growth has a significant positive relationship with the current financial performance,but the impact on the late financial performance is not significant.In contrast,current financial performance is negatively correlated with late beyond-sustainable growth,but has no significant impact on current sustainable growth.In addition,beyond-sustainable growth and financial performance have their own hysteresis effects,whose current indicators are significantly affected by previous indicators.The empirical results remind the government to create a stable and healthy development environment of the real estate business,and tell many managers that beyond-sustainable growth mainly has an impact on financial performance in current period not the late period,and the actual growth higher one unit than sustainable growth only leads to 0.2% increase in current financial performance.Therefore,not the actual growth rate is faster,the enterprise value will be higher,and the financial performance will be better.The impact of financial performance on beyond-sustainable growth also remind managers that only considering strategic objectives can improve financial performance and achieve healthy growth.Because,the better financial performance in current period,the smaller beyond-sustainable growth in later periods.In other words,actual growth will be close to sustainable growth in later period,and finally reach the ideal balanced growth.