Sustainable Growth In Corporate Finance Theory And Application

The goal of financial administration of enterprise is to realize the maximum of enterprise value, with the improvement of the growth rate, the profits of enterprises and enterprise's value will increase, but growth will be endless. According to situation of our country, a lot of listed companies regard increasing in the company as primary problem in company's strategic management, but they also ignore durative ability of increase which leads to over-evaluation of oneself. So, it is not always lucky that the company grows at top speed. Likewise, increasing too slowly is also one waste of resource, this kind of enterprise needs to solve financial problem urgently too, if they can not well realize the meaning of financial slowly increasing, they will become the prey that purchasers purchased. Too fast or slowly in increase can bring the same serious drawback to development of enterprises. In order to keep healthy develop for a long time, company administrator must make decisions according with its'actual development goal and balance between growth of fund and sale under limited financial resources. In consideration of this kind, the SGR model is an effective plan tool. Sustainable growth rate is actually the greatest sale rate of increase which enterprises can make in case of not excessively using the financial resources.The research purpose of my text is that can give one new management idea to administrator and supervisor of listed company. In order to grow up healthy, Enterprises must equilibrate the sell goal, business efficiency and financial resource, confirming the selling rate of increase will match enterprise's realistic and financial market situation. The manager can utilize SGR model as the reference standard of company's development speed, and compare with company's actual rate, judge stage when development is at and the financial problem is about to be, then can offer the appropriate financial tactics for development . On the basis of drawing lessons from theory abroad this text firstly give the definition of financial sustainable growth and reveal its financial intension, then I analyses its reason and influence factor deeply. After that I discuss it's modeling principle and directive significance thoroughly. At last I combine examples of listed company to discuss the application of SGR model. I hope I can offer some new thinking which are useful in financial management.