Financial perspective on sustainable growth of listed companies

Abstract: This paper reviews a company based on the theory of sustainable development, drawing on the U.S. senior financial scientist Robert. Higgins and James. Van Horn's financial sustainable growth model, select since 1997 in Shanghai and Shenzhen Stock Exchange 24 textile enterprises, the financial quarterly reports for 10 years as the Research object, using the mean test and Wilcoxon test of mathematical statistical methods listed companies in the textile Industry in China 1998-2007 annual sustainable growth of the textile Industry.

Keywords:: financial sustainable growth, the textile Industry, listed companies, evidence
Professor Higgins in 1981 <<Financial Management Journal>> published in the "sustainable growth rate under inflation of the financial," a paper presented financial sustainable growth rate equation. He said: "Corporate Finance can sustainable growth rate (Sustainable Growth Rate, referred to as the SGR is not exhausted its financial resources in the conditions, enterprises are able to sell the maximum rate of growth. "It is a comprehensive financial indicators, reflecting the company's operations in the existing management and financial policies that have the ability to grow under, it should be as a corporate financial analysis and management tools.

Textile Industry is an important pillar industries for many years to increase employment, promote urbanization, improving people's living and socio-economic development has made positive contributions. However, in 2007 1-l1 64.89% on the entire Industry total profits of the enterprise is only l11.9 billion, the industry accounted for only 10.81% of total profits, the average sales profit rate is only 0.73%, 1.18% over the previous year's profit has dropped 0.45 percentage points. this one, loss-making enterprises 7 339, losses of 11.427 billion yuan, up 28.83% over the same period increased losses. In the new situation, the industry's deep-seated contradictions increasingly obvious. specific performance deficiencies in the ability of independent innovation and structural problems that still exist, use of resources rate is low, the pollution problem more serious and the competition is not standardized. so that the risk of resistance of the textile industry, while finance sustainable growth can be achieved far-reaching significance.

First, the growth performance over the years the descriptive analysis and normality test
In this paper, the 24 selected listed companies in the textile industry for sustainable growth in the financial year 1998-2007 and a simple weighted average real growth rate, and find the geometric mean (as shown in Table 1.

As can be seen from the table, in addition to listed companies in 1998-1999, other than excessive growth of the textile industry, the actual growth rate is less than the rest of the financial sustainability of growth, indicating slow growth. And the financial sustainable growth rate from 1998 58.9374% down to 2.15838% in 2007, the lowest point of which is -7.36467%, indicating that in the absence of achieving sustainable growth of financial growth at the expense of the shareholders. The actual growth rate from 1998 to 2006 average annual double-digit growth , while in 2007 the industry's real growth of only 3.102481 percent, industry growth declined sharply. from the actual growth rate of sustainable growth and financial trends and variance can be seen that the Chinese textile industry financial sustainable growth rate of listed companies fluctuations is much larger than the actual growth rate changes.

After Keer Mo Glover - Smirnov test (Table 2 shows that, in addition to 2000, 2001, the financial sustainable growth rate and mixed samples Sig significance level are much smaller than 0.05, while the actual growth rate in 1998 than in 2006, significant levels of foreign Sig are much larger than 0.05, which refused to finance sustainable growth rate assumption of normal distribution, namely, that its distribution is not normal, but the actual growth rate in addition to 1998, beyond 2006 are subject to normal distribution assumptions.

Second, the paired samples and significant correlation hypothesis test
Use SPSS11. 5 statistical package, by paired samples T-test results are as follows:
1. Paired samples correlation test
Selected listed companies in China's textile industry 1998-2007 24 years of finance for sustainable growth and actual growth rate of the correlation coefficient, a significant linear relationship between the probability shown in Table 3.

Table 3 shows, the sample companies the financial year 1998-2007 the actual growth rate of sustainable growth and the correlation coefficient is 0.13, statistically significant linear relationship between the probability of 0.037, less than 0.05, indicating that they have linear correlation relationship. This means that the 24 selected listed companies in the textile industry sales growth 1998-2007 and its financial resources to match the load.

2. Paired sample test of significance
24 selected listed companies in the textile industry 1998-2007 financial year the actual growth rate of sustainable growth and whether there were significant differences between the test results shown in Table 4.

We can see from Table 4, T test two-tailed significance probability of 0.000, less than 0.05, reject the null hypothesis means that the 24 selected listed companies in the textile industry 1998-2007 financial year and the actual growth rate of sustainable growth significant differences, the unrealized financial sustainable growth.

Third, is to achieve sustainable growth of the hypothesis testing of financial
As the two groups are non-normal data distribution, the distribution type is unknown, but two samples, so her growth rate for the test and the actual growth rate of financial sustainability is a significant difference, that is, testing whether China's textile industry to achieve financial listed companies can continues to grow, we can use non-parametric test (Nonparametric Tests of two related sample test procedure (2 Related Samples Tests Procedure of the Will Keke Sen signed rank test method (Wilcoxon Signed Ranks Test to achieve.

Links to download free paper using SPSS statistical package http://www.hi138.com Will Keke Sen signed ranks test results are shown in Table 5. From the table given in the sustainable growth over the years 1998-2007 the actual growth rate and the Z value and a gradual two-tailed significance probability (<0.05, indicating that in addition to outside are rejected 1998,1999,2000,2001,2007 no significant difference between the original hypothesis, means that the sample companies 2002-2006 years, the actual growth rate of sustainable growth and consistent, not to achieve sustainable growth.

Fourth, lack of growth and growth over hypothesis testing
By the paired samples T-test shows that 24 listed companies in the textile industry for sustainable growth and actual growth rate of financial inconsistencies, unearned finance sustainable growth. So, is the sustainable growth rate of real growth rate greater than the financial or the actual growth rate is less than the sustainable rate of growth of financial? that is excessive growth or increase of less than? Wilcoxon test, also known as "Wilcoxon signed rank test" (Wilcoxon signed ranks test, can be used to test samples whether the data and the "theoretical value" there are significant differences. The method by calculating the deviation of each observation, the absolute deviation of the rank and the rank and positive and negative symbols, not only consider the difference between two sets of data symbols, and considering the size difference is A more accurate and useful test method that can be used for further testing confirmed that this sample of 24 the growth in the company. use SPSS11. 5 statistical package Wilcoxon signed rank test, the results shown in Table 6 .

Rank test results from the above can be seen, the selected 24 Chinese listed companies in the textile industry 1998-2007 financial year the actual growth rate of sustainable growth and the negative difference between the rank number 223, accounting for 30.51%, The rank number is 522, accounting for 69.49%, end to zero, that is not in the total sample and the actual growth rate of the financial sustainability of equal samples. So that, 1998-2007, selected 24 home textile industry more than the actual growth rate of listed companies financial sustainable growth rate, or that its growth with its own financial resources do not match the rapid growth. References:
[1] Robert �� C �� Higgins. Sustainable Growth under Inflation [M]. FinancialManagement. 1981.

[2] James �� C �� Van Home. Sustainable growth modeling [J]. Journal of Corporate Finance. 1988:19-25.

[3] Robert C Higgins. Financial Management and Analysis [M]. 5th ed. Shen Yi-feng, et al, translated. Beijing, Beijing University Press, 1998.

[4] Peter F Drucker. Management: Tasks, Responsibilities, Practice [M]. Beijing: China Social Sciences Press :1984:104-106.

[5] James C Van Horn. Financial Management and Policy [M]. Dalian: Dongbei University of Finance Press, 2000.

[6] Lu Wen Dai. SPSS forwindows statistical analysis [M]. Beijing: Electronic Industry Press ,2000:284-426.


Abstract: On sustainable development in the theoretical basis, the senior financial chiropractors Robert Van Horn. Henry Higgins and James. The model of sustainable growth in 1997, select in Shanghai and Shenzhen stock exchanges on 24 of the textile enterprises for 10 years of finance for the study and average value Wilcoxon mathematical statistics inspection and testing of statistical methods of our country textile industry listed companies in 1998, the textile industry to sustainable growth ..

Keywords:: financial sustainable growth; textile industry; listed company; demonstration

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