Private Enterprises’ Finance On The Stock Market And Enterprise Growth

The growth of enterprises is influenced by many factors, many scholars did differentresearches. Among them, financing problem is one of the important issues affecting enterprisegrowth. In the background of financing difficult in our country, many private enterprises havetaken listing to raise capital. Relative to other means of financing, financing on the market broughtmore complex effect. Therefore, this paper selects listing as the starting point, studied the influencein enterprise growth of listed on the market.In the process of research, this paper selects the Jiangsu-Zhejiang-Shanghai area’s51privateenterprises listed in2006and the2007annual as the research sample. In order to achieve theresearch goal, this paper establishes the index system of two levels: enterprise growth index andenterprise growing drive index, using principal components analysis and multiple linear regressionanalysis to research these indexes. First of all, using principal component analysis to extract maincomponents from enterprise growth index, in order to compare the growth of the companies beforeand after listed. Secondly, on the basis of the principal component analysis, it’s time to do multiplelinear regression analysis, to find out the effects of finance on the market to enterprise growth.According to the results of empirical analysis, this paper draws the following conclusions:from principal component analysis result, after private enterprises finance on the market," growthfactor" and" earnings growth factor" decreased first and then increased," return on investmentfactor" is rising year by year. From the results of regression analysis, after private enterprisesfinance on the market, the reductions of ratio of liabilities to assets will promote investment returnrate; the increase of capital expenditure will promote investment return rate; the increase of theproportion of shares in circulation will hinder the enterprises growth. In addition, finance on themarket can also enlarge the scale of enterprises.As a result, private enterprises finance on the market has great influence on enterprises growth,but this effect is not simply to promote or block up action. In addition, the study period is exactly inthe financial crisis as well as the new enterprise accounting standards promulgating, these external factors will have an important influence on the research results.