The Empirical Study Between The Asset Quality And Growth Ability Of Companies

With the continuous development of our economy, increasingly competitive market,China’s listed companies in the rapid development, while also facing a more severe testcontinuous development. Company managers, investors these stakeholders are veryconcerned about the company’s growth,but growth also reflects the company’s future value.Quality of assets of listed companies determine the merits of the company’s existenceand ease of profit,which restricts the company’s long-term development. Superior assetquality not only for enterprises to create a real cash flow, but also to maintain thecompetitiveness of business continuity. Most enterprises one-sided emphasis on assets“quantity”, but they ignore the improvement of the assets of the “quality”, which hinder thelong-term development.In view of asset quality in the important role of business growth, thispaper fully absorb and learn from the research on business growth, based on the asset qualityfrom the perspective of manufacturing industry’s asset quality and growth correlation.In this paper, we select manufacturing listed companies in the industry as the researchobject, and select many financial indicators for evaluating the business growth of the originaltarget.Through the listed companies in China2008-2010principal component analysis ofstatistical data to build comprehensive evaluation of enterprise growth indicators, and as adependent variable. Instead of many scholars who past simply select a variable to measurethe sexual practices of the company’s growth, which have a certain degree of objectivity andinnovation.Meanwhile, we select six indicators,such as the existence of assets, liquidity,profitability, structural, sustainability and risk of principal component analysis to determinethe asset quality indicators. Finally we establish multiple regression analysis through assetquality indicators and the company’s growth indicators, purpose to test the quality of assets inmanufacturing listed companies impact on the company’s growth.The results show that: considered from the perspective of the existence of assets, theexistence of real assets will promote the growth of listed companies in China; the liquidity ofthe assets has a significant role in promoting the growth of the company, the faster assetturnover, indicating that the company assets more take full advantage of the strongercorporate profitability, the more conducive to business growth; The profitability of the assets,reasonable structure and realisability also have promoting role in the company’s growthWhile, the risk of the assets has a relative inhibition role in the company’s growth.At last,we put forward a series of policies and suggestions according to the conclusionsabove.These policy proposals include how to manage assets of enterprise for the enterprisemanagers and how to know the business performance and invest value of the enterprise forthe investors.