Research on the relationship between asset structure and enterprise growth ability of listed automobile companies: Evidence from China

Abstract

Abstract In China's national economy, the auto industry has played a crucial role in stimulating the economy and promoting employment. Assets are the foundation of the production and operation activities of automobile manufacturing enterprises. Different asset structures (AS) will bring different levels of income and risk, and there will be differences in the impact on the growth of enterprises. This paper constructs a comprehensive index evaluation system of enterprise growth ability (GA) with 17 evaluation indicators in six dimensions: profitability, operating ability, risk response-ability, market growth ability, innovation ability and human capital. The variables of AS are determined from the two dimensions of total AS and current AS, and the relationship between AS and enterprise GA is tested by multiple regression analysis. This study found that the proportion of current assets is significantly positively correlated with the enterprise GA in listed companies in China's auto industry in the total AS. The proportion of fixed assets is negatively correlated with the enterprises GA. The proportion of intangible assets is slightly negatively correlated with the GA of current enterprises, and significantly positively correlated with the future GA. In the current AS, the proportion of monetary capital is significantly positively correlated with the GA of enterprises, while the proportion of inventory is significantly negatively correlated with the GA of enterprises.