A Study On The Correlationship Between Financial Resources Of Private Enterprise And Firm Performance

In recent years,Chinese private enterprises have made great progress and become a major force in economic development,yet the high failure rate is prevalent.Faced with this problem,through the failure of private enterprise case studies summary,we find that financial resources owned by private enterprises are relevant with this phenomenon.As well known,the privte enterprises may encount some problems,such as not easy to raise funds,unfair treated by government and the quality of personnel in poor condition.These problems associated with financial activities are related with performance of enterprise.The origin of the problem can be attributed to financial resources owned by enterprises.So we combine the meaning of financial resources and the main reasons for success or failure of firms to mainly make research on three types of financial resources,namely:capital of financial resources,politics of financial resources and human capital of financial resources.The relationship between financial resources and the performance of enterprise is analyzed with the enterprise resources theory.There are important theoretical and pratical sigficances for firms to tap their own ability to access financial resources and enhance the competitive advantage of corporate finance to promote firm's business performance.The core of this paper is to research the relationship between financial resources and firm's business performance.Encircling on this research theme,drawing on revelant theories of management and economics,using prescriptive studies,regression annlysis and other research methods,we investigate the relationship between financial resources and firm performance in order to supply some valuable suggestions to management of private firms.There are five chapters in the paper.The first chapter introduces the research background,the structure and methods of this paper and so on.The second chapter is the review.The third chapter mainly introduces the firm resources theory ,making a detailed analysis for the relationship between financial resources and firm's business performance based on the theory and providing corresponding hypothesis for further empirical analysis.The fourth chapter is maily empirical study based on samples of IPO private firms in Shanghai and Shenzhen during 2006-2009.The last chapter describes results of the paper and provides some valuable suggestions.