The Empirical Study On The Relationship Between The Asset Quality And Growth Ability Of Listed Companies In China

With the development of China's securities market, the competition for the listed companies has become more and more fierce. They have to be faced with the test of sustain development. More and more investors and enterprise managers begin to pay attention to the question of how to ensure sustainable, stable and healthy growth for enterprises. The academe has made a large amount of research to the growth ability, and gained great meaningful study achievements. Based on the pre-condition of domestic and international research of growth ability, this paper analyzes the asset quality relationship between the asset quality and the growth ability of listed companies in China.This paper chooses the list companies of manufacturing, wholesale and retail trade, information technology and integrated industry as the research objects. Based on the financial data from 2004-2007,we chose the growth rate of total assets, net asset growth, the growth rate of fixed assets, main business revenue growth, profit growth rate of main business, the growth rate of net assets per share and earnings per share growth rate as the growth measurement. Principal component analysis is used to get a growth factor. And then establish the multi-dimensional regression model of growth ability and asset quality.Through the research it discovered that the asset quality has important influence on the growth ability of the enterprise. We conclude the results of the empirical study as follows:①The non-performing asset will restrict the growth ability of the enterprise for all the industries.②Earning power of assets can improve the growth ability of enterprises.③There are different best asset structures and liquidities of assets for different companies. In order to improve the growth ability, the companies should find the best asset structure and liquidity of assets for themselves.At last, we put forward a series of policies and suggestions according to the conclusions above. These policy proposals include how to manage the asset of enterprise for the enterprise managers and how to clear the truth prospects and invest value of the enterprise for the investors.