top
Articles
  • Empirical Research on Sustainable Growth of Automobile Manufacturing Listed Companies   [MASS 2012]
  • Author(s)
  • Jing Ma, Huizhen Xu
  • ABSTRACT
  • Sustainable growth rate is an integrated financial index. It reflects a company's sustainable growth situation from the company's operating efficiency and financial policies. It uses retained earnings rate to reflect the manager's attitude towards the dividend payment and clears the manager's intention to use both internal and external resources. At the same time, sustainable growth rate provides an important reference for a company's development ability. When the actual growth of the company is different from the sustainable growth rate, it reminds managers to identify the financial problems of high growth or slow growth so that managers can develop the right financial strategies and tactics in time. This paper is based on Robert C Higgins's sustainable growth model. By calculating the sustainable growth rate and the actual growth rate, the paper analyzes the sustainable growth conditions and net profit margin, total asset turnover rate, retained earning rate and equity multiplier’s impact on China's automobile manufacturing listed companies. It reveals some financial problems of these companies and provides some suggestions.
  • KEYWORDS
  • Automobile manufacturing listed companies; Sustainable growth rate; Actual growth rate
  • References
  • [1]
    Robert C Higgins, Analysis for Financial Management, Peking University Press, 2007,pp112
    [2]
    Wang Yuchun, Hua Guiru, Examine the Sustainable Growth of Market Companies from the Financial Angle: the Empirical Study of the Information Industrial Listed Companies, Accounting Research,No.2, 2007, pp65-71.
    [3]
    Tang Guliang, You You, Comparative Analysis and Case Validation of Sustainable Growth Model,Accounting Research,2005 .pp50-55.
    [4]
    Liu Bin,Huang Yong hong,Liu Xing, Empirical Study on the Sustainable Growth of the Public Companies in China, Journal of Chongqing University. Vol.25, No.9, 2002, pp150-154.
    [5]
    Cai Tianrui,Empirical Research on Sustainable Growth Listed Insurance Companies in China, HLJ Foreign Economic Relations & Trade, No 179 ,2009,pp109-111.
    [6]
    Wang Yuchun,Hua Guiru,Empirical Research on Sustainable Growth of Agricultural Listed Companies in China, Chinese Rural Economy,No.10,2006,pp43-49.
    [7]
    Li Mingfa, Zhu Heping, Liu Wei, Empirical Research. On Sustainable Growth of Small and Medium-sized Private Listed Companies in Jiangsu and Zhejiang, Management Observer,No.1,2009,pp70-71.
    [8]
    LI Xiuzhu,Empirical Research on Sustainable Growth of Forestry Listed Companies, Technology Economics,Vol.26,No.6,2007,pp37-40.
    [9]
    Qu Tianyi, Relationship between Sustainable Growth Rate and Sustainable Development, Commercial Times, No.6, 2009, pp74-75.
    [10]
    Guo Hui,Yi Ming,The Growth Analysis of Listed Companies in Information Technology Industry, Science and Technology of West China,Vol 7,No.18,2008,pp58-59.

Engineering Information Institute is the member of/source content provider to

http://www.scirp.org http://www.hanspub.org/ http://www.crossref.org/index.html http://www.oalib.com/ http://www.ebscohost.com/ http://www.proquest.co.uk/en-UK/aboutus/default.shtml http://ip-science.thomsonreuters.com/cgi-bin/jrnlst/jlresults.cgi?PC=MASTER&Full=journal%20of%20Bioequivalence%20%26%20Bioavailability http://publishers.indexcopernicus.com/index.php