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Growth capacity: new assessment thinking on enterprises

By Zhang Junzheng  

Date: 2002/10/25

Abstract:  

Profit-making growth is the core of the strategic management of the enterprises in the current economic environment. Stressing the growth capacity in the enterprise assessment is an inevitable result by emphasizing sustainable growth of enterprises and creating value to share holders and other interest related parties. It has a special significance for Chinese enterprises to meet the international competition after WTO accession. The assessment on the growth capacity of enterprise can be conducted at two levels, which are the performance indicators and inner indicators. Through a positivism survey on the performance indicators of growth capacity of the listed companies on Shanghai and Shenzhen stock markets, this paper believes that the overall growth capacity of listed companies is declining and low profit-making ability is main factor for declining growth capacity. Measures like systematic promotion and growth ecology nurturing should be adopted to lift the growth capacity of listed companies.