Study Of Financial Ability Evaluation Based On Improving The Core Competitiveness Of Enterprises

With the accelerating pace of economic globalization, competitions in and betweenindustries become more and more intense, especially after China’s accession to the WTO,domestic enterprises begin to participate in international competitions more and morefrequently. Regardless of the government or firms, they both strongly feel the importanceand urgency of enhancing the core competitiveness. The huge competitive pressures bringgreat challenges to China’s enterprises. No matter from the point of survival, developmentor earnings, in order to seek an effective way to enhance their core competitiveness,companies all should have a clear understanding of their advantages. As an independentand integrated system in corporation, finance through outs all aspects of the business andmanagement in form of values, it is the nose of cow of the entire enterprise management.Therefore, the establishment and improvement of financial management system andfinancial evaluation system that based on the core competitiveness of enterprises can betterhelp the firms to provide supports for the sustainable competitive advantage of their ownfrom the financial point.This study first combines the theory of core competitiveness of enterprises with thedefinition of financial ability given by former scholars, then explores their relationshipsand gives a definition of corporation’s financial ability based on core competitiveness;Secondly, the thesis constructs the evaluation index system of corporation’s financialability, basing on certain literatures, expert interviews and questionnaires, combining thetheory of core competitiveness of enterprises. Then the author uses structural equationmodel to screen and optimize the primaries evaluation that based on enterprise’s corecompetitiveness of the financial ability; Thirdly, inviting college professors and scholarswho are engaging in financial management and those who are in charge of finance in largeenterprises to score the importance of selected indicators. Finally, randomly selecting25sample manufacturing companies from Shanghai stock market and using the evaluation index system to evaluate them. Then the study verifies the validity of the index system andgives suggestions to rise and increase the financial ability of corporations, meanwhile,explores ways to enhance enterprises’ core competitiveness.Through the research of this thesis, the author not only builds the evaluation indexsystem of financial ability of corporations that based on their core competitiveness, butalso further expands the appraisal theory of enterprise financial ability. These providereference and support to the firms which are seeking ways to enhance their corecompetitiveness.