Financing structure and enterprise value: from the perspective of sustainable growth

Growth is important for enterprises to realize profits and create value. From the perspective of sustainable growth, when the actual growth rate of enterprises is higher than the sustainable growth rate, the growth will be limited by the internal financial capacity. At this point, how should enterprises obtain financial resources to support their own growth? Based on this, this paper selects the financial data of Shanghai and Shenzhen A-shares listed companies from 2015 to 2019, and takes Higgins's sustainable growth rate as the standard to test the relationship between different financing methods and the value of enterprises with excessive growth. The research shows that: in the state of excessive growth, endogenous financing is significantly positively correlated with enterprise value, debt financing is not significantly correlated, and equity financing has a significant negative impact on enterprise value. The conclusion of this paper is expected to help Chinese enterprises to choose the most appropriate financing method, so as to improve the efficiency of using funds and enterprise value.