Based On DEA Approach For Evaluating The Financial Management Capacity Of Enterprises

Financial management is the organic combination of enterprise financial management activities of special knowledge and experience.Financial management as the center point of view has been established in the center of the modern enterprise management.Enhance the financial management capacity of enterprises has become an urgent problem in the complex economic environment.In order to Improve the financial management capacity,we need to analyze the financial management capability factors and explore a more scientific evaluation methods, and develop promotion strategies.This article refers to the achievements on the ability of the financial management.After analysing the financial management capacity of the constituent elements and comparing the advantages of the system evaluation methods,the article suggests to evaluate the financial management capacity with the Data Envelopment Analysis method and put forward suggestions according to the results of empirical analysis.It also tries to use the Factor Analysis model as an auxiliary model of the Data Envelopment Analysis method and extract public factors of input indicators.By evaluating the competitiveness of the financial management capacity, it provides the scientific foundation for strengthening internal financial management,improving the efficiency of financial management and economic benefits.For the details:Firstly the article summarizes the research achievements and traditional evaluation methods of home and abroad.As a result,it chooses the DEA method as the financial management capacity evaluation model and decides to use Factor Analysis method as an auxiliary method.Secondly,we analyze the financial management capability elements and define the input/output indices.Using the data(2011) of34construction enterprises as the evaluation sample,the article does a relatedness analysis to the input indices with the Factor Analysis method.It extracts the factor and uses the factor as the input indices of DEA financial management capacity model and sets the score as the default value of the DEA model.Thirdly,using the calculated value of the DEA method to evaluate the financial management capacity of the sample enterprises.Whether the enterprises input/output indices are efficiency or not is calculated by bringing the processed into the DEA evaluation model. For the enterprises which are in efficiency,the article provides directions to improve. Finally, based on the results of DEA analysis,Recommending enhance financial management capacity of the enterprise funds management,financial management information construction,finance staff training, and financial risk management.