The Relationship Between Slack Resources And Company Growth

Market economy and free economy had in a great extent promoted China's economic development and business take-off,"China's speed" has made world-known and remarkable achievements,but the extensive inefficient,non-sustainable development method has also been criticized.To response of this problem,the top executives of our country are no longer blindly pursuing the development speed and short-term achievements as before,changing to seek the balance of development quality and development speed as well as the long-term development ability index.The substantive changing of this trend,for company,is the modifying of the attitude of creation and using of resources.Among them,slack,which was defined as idle and reservation resources with no use for maintaining the normal operation of the enterprise,its role has also undergone a corresponding changing.In recent years,slack related research shows that it play an active role in the growth of enterprises,helping both scholars and firm runners out of the the "bias" of slack is unfavorable factors for company development,and the study of the role of slack is still a hot topic of academic research.A large proportion of current slack literature focuses on its relevance to the short-term performance indicators of enterprises,and the results are varied.The reasons are as follows:First,the short-term performance indicators of enterprises are based on the resources being used for maintaining company's normal activities,with less relation of slack;Second,the difference of features between different industries,resulting in the demand for slack and the role of its playing also have a greater degree of difference;Third,the utility of slack is closely related to the level of corporate governance.Therefore,it is particularly important to study the relationship between slack and long-term,comprehensive performance indicators in the context of specific industries.In order to accurately and scientifically reveal the role of slack,this paper based on the tourism industry,selected corporate growth,a long-term comprehensive indicators,corporate governance as a moderating variable to study the relationship between slack and the company growth.This paper first analyzed and summarized the three main variables:slack,corporate governance and company growth.Based on that,this paper constructs a research model of the relationship between slack and company growth with the moderating effect of corporate governance,then proposed assumptions.Secondly,designed the variables in the model and took the data of the 32 listed Shanghai and Shenzhen listed tourism enterprises.The theoretical assumptions are verified by factor analysis,descriptive statistics,correlation analysis and regression analysis.Finally,according to the conclusion of this paper,combined with the empirical analysis results,put forward the corresponding management implications.The results of this paper showed that:(1)high liquidity slack is positively related to the company growth,the relationship between low liquidity slack and company growth were U-type;(2)corporate governance level had positively moderating role in the positive correlation between high liquidity slack and company growth,had negative moderating role in the negative correlation between non-scale low liquidity slack and company growth,had positively moderating role in the positive correlation between scale low liquidity slack and company growth.For enterprise practice,it is especially important to maintain the appropriate slack according to the understanding of their own resource level,structure and demand.In addition,the matching of different types of slack and corporate governance is significant for the development of the company.