The Research On Financial Management Capacity Index Based On Value Creation

In the fierce international competition environment, enterprises in our country should change management idea and improve their management ability constantly if they really want to "going out" and have a good share in the global market with the improved internationalization management level and the enhanced international competition ability. Financial management is the core of modern enterprise management, but in our country, even if the listed companies also have a large gap compared with multinational companies in financial management ability. Therefore, improving the financial management ability is an important guarantee to promote our country’s enterprise management ability and further improve the international competitiveness. The research of financial management ability index is conducive to understand and then take measures to improve enterprises’own financial management ability level. The overall financial management ability of our country’s enterprises has advanced after the once-in-a-century global financial crisis, but the case like GREEN-LAND Co., LTD. still occurred frequently that financial fraud, accounting fraud and business failure make enterprises delisting in recent years. This proves that the level of public companies’financial management ability in our country is uneven. Then how to identify the public company’s financial management ability as outside stakeholders, regulators and internal person? Now there are still few researches of this in both theory and practice. This paper calculates the public company’s financial management ability index from the information disclosure of the public company in the situation of outsider, to recognize the problems in financial management and further strengthen the core competencies for the public company, to know the financial management capacity level of public companies for investors, creditors and regulators which provides the basis for improving the social approval. Therefore, the research of financial management capacity index has certain foresight in theory and practice.To research the public company’s financial management ability index, this paper makes use of various research methods including empirical research and normative research etc. and follows the technical principle which is from international reference to theoretical analysis to index creation and to application and analysis. Firstly, through literature analysis, it researches the literatures about financial management ability index to summarize the experience and deficiency. Secondly, through comparative analysis, it summarizes successful experiences of international certification system. Thirdly, through theory deduction, it expounds the concept and inscape of financial management ability and the theoretical underpinnings of building the financial management ability index. On the basis of which, through induction deduction and analysis method etc., it builds a financial management ability index system which is suited to our national situations and scientifically reasonable. Then through empirical analysis and statistical analysis etc., it applies the financial management ability index system to the public company to test the suitability. The ultimate goal is not only to provide a scientific and full idea to evaluate the company’s financial management ability for the company itself and stakeholders, but also to test the index system suitability.By the above-mentioned research, the paper can come to the following conclusions:in general, the company’s financial management of the ST company is weaker; on the contrary, that of small size company is greater. There are significant differences of the company’s financial management ability level between different regions and industry. The areas of higher and weaker financial management ability level show obvious spatial agglomeration effect. The public company of new industries and newly listed is more inclined to use new management methods and their financial management ability level is higher.The contributions of this paper are listed as follows:firstly, it defines the concept and components of financial management ability. This paper concludes and elaborates the concept and main components of financial management ability after reviewing the related theory of financial management ability and referencing to previous research results, in order to create the breakthrough point for building the financial management ability index system. Secondly, it constructs a scientifically reasonable and workable financial management ability index system including evaluation index system and calculation methods of index and forms a whole index model, in order to lay the foundation for calculating financial management ability index. Thirdly, it applies the financial management ability index system to the public company and researches the current situation of the public company’s financial management ability via statistical analysis method. The final purpose is to put forward the policy Suggestions for improving Chinese public company’s financial management ability level.