| What speed a corporation should develop at has always been an important part of the strategic management of corporate finance, and has increasingly attracted widespread concern of scholars from home and abroad. Sustainable growth theory believes that there exists an appropriate speed for the development of enterprise, and strives to solve the problems arising in the process of growth. For enterprises in our country, especially for those companies which decline or even go to bankruptcy because of rapid growth or lack of appropriate growth strategy, the application of sustainable growth of this concept is extremely important, and its significance is increasingly prominent.The rate of sustainable growth of enterprises is affected by many factors. Economic environment, changes in the industry factors are external ones, and internally the rate of sustainable growth is affected by the sales margin, asset turnover, the impact of the earnings retention ratio and the equity multiplier. The combined effect of these factors is that the actual growth rate often does not match that of sustainable growth. When there is a difference between the two, managers can analyze the causes of problems, and make financial strategies timely to enable enterprises to develop at an appropriate rate.This paper uses a combination of theory and case study methods. We first introduce the research achievements of sustainable growth theory, describe the specific content of the theory of sustainable growth, including sustainable growth and sustainable growth model, and discuss differences and relations between the actual growth and sustainable growth. Then we point out the guiding significance of the application of sustainable growth model for the development of enterprises and summarize management strategies for corporate financial growth. Finally, combining specific cases and using sustainable growth model to analyzing its growth, we propose practical financial strategies when the actual growth rate and sustainable growth financial policies are different, in order to provide new ideas and evaluation for the guidance of company’s financial management. |
