Executives' Association,Equity Participation of the Parent Company and Growth of the Subsidiary——Based on the Empirical Data of the SME Board Listed Company

Based on the panel data sample of enterprises from 2009 to 2012,the author conducted a quantitative exploration of the constitutional latitudes of subsidiary growth.On this basis,the author carried out empirical analysis on the relationship between equity participation of the parent company and the various dimensions of the subsidiaries growth,and then discussed the regulating effect of the executives' association of the parent and subsidiary company to the relationship between parent company equity participation and subsidiary companies growth dimensions.Then the author drew the following conclusions:subsidiaries growth includes three latitudes:profitability,operational capacity and growth potential;the equity participation of parent company has a positive impact on subsidiary's profitability and operational capabilities,and has a negative impact on the growth potential of its subsidiaries;parent company executives' association has a significant negative regulating effect on relationship between the equity participation of the parent company and subsidiaries operating capacity and growth potential.It has an insignificant regulating effect on relationship between parent company equity participation and subsidiary profitability.