Research On The Correlation Of Growing Company’s Credit Management Level And Financial Performance

Abstract:For a long time,credit risk is a major obstacle of the enterprise from growth stage to maturity stage,and the main reason of this obstacle is largely due to the credit management issues of the enterprise.Currently, the vast majority of our growing company did not establish a separate credit management department,so we can see that credit management has not been accepted.However,the default of account receivable and chain debt are still with our company,if the company do not manage the credit fundamentally,then these images can not be solved,and there will be more problems.In addition,because the level of credit management,to some extent,can be reflect through financial performance of the company.Thus,the paper from the perspective of the growth stage of the enterprise life cycle to research the credit management of the company.Expect through the correlation research between the growing company’s credit management level and financial performance to interpret the meaning of credit management much better,and provide practical guidance to credit management for the company.The article is in reference on the basis of domestic and foreign scholars study,through the research of Life-cycle Theory,Credit Manage-ment Theory, Asymmetric Information Theory and Credit Assessmnet Factor Theory,the author integrate these theories effectively,and build a growing company’s credit management analytical framework.The author firstly analyzing the characteristics and current situation of the growing company’s credit management;secondly,using the2010-2012small plates and the GEM companies’data of Shenzhen A-share market as the original data,and using the method of growth period defined to select248companies as the growing company of Shenzhen A-share market; thirdly,using the principal component analysis to select5categories,12class financial indicators,namely the financial indicators of influence growing company’s credit management;fourthly,using the multiple linear regression method as the empirical analysis,the conclusion is:profitability indicators,solvency indicators,operational indicators, liquidity indicators and development indicators are significantly correlated with the credit management of growing company;finally,we summarize the research conclusion,and give some policy suggestions then point out the lack and the prospect of the research.