| Traditional financial analysis is a static analysis that generally regards some time range or time point of a single enterprise as the research object. The results of such research and analysis have one-sidedness on time aspect and greater limitations. Therefore, it is necessary and significant to establish a system of financial analysis which is more comprehensive, macroscopic and dynamic. This paper proposes a financial index system which makes a breakthrough as financial analysis tools in the traditional sense. The financial index of listed companies, based on the listed companies in China as the research object, is a dynamic financial index by integrating the financial information of listed companies and selecting the appropriate financial indicators and scientific empowerment. Financial reports of listed companies provide us with a large number of the financial data which has different characteristics. We can use the way of statistical index to compile a financial index by condensing the huge data into a concise index value so that accounting information and all kinds of financial indicators will be highly integrated and the intuitive financial situation will be reflected.After building the financial index system, the focus of this research is how to use the financial index to analyze the laws and the financial characteristics behind the index. To study different financial indexes and the correlation between the financial index and macroeconomic, we divide financial index into Industry-wide Financial Index, Industry Financial Index, and Trade Financial Index according to the different size of the samples. We can also subdivide the financial index into Category Financial Index and Synthetic Financial Index based on the different financial characteristics. And Category Financial Index includes five parts:they are Debt Service Index, Profitability Index, Cash Flow Index, Operation Index and Growth Index. Financial analysis methods with financial indexes not only enrich the connotation of the Macroeconomic Boom System to broaden the financial analysis from the micro-level to macro-level, but also achieve a dynamic and systematic monitoring of financial information. In-depth analysis and excavation of financial index behind the listed company’s laws of financial operations and characteristics of financial fluctuation will help investors to predict the future trend of the industries that they are interested in, help listed companies to know their own level and status in the industry and to establish an effective early warning system, help the government and regulators to regulate the industrial economy and adjust the industrial structure more effective, promoting the coordinated development of the economy.This paper introduces the classification and the specific role of the financial indicators in the financial index system. And, a total of23quarters of the financial index since the first quarter of2007to the third quarter of2012is ultimately generated based on all non-financial listed companies in China’s A-share market. Then, there is in-depth analysis for the financial characteristics of the different financial indexes and the correlation between these characteristics and macroeconomic. Finally, it focuses on some typical industry, namely the real estate industry, to make a comprehensive description.The content of this paper is organized as follows:Chapter Ⅰ:Introduction. This section contains the background and significance of the research. It is introduced that the origin and the effect in the macroeconomic field and the micro-financial field of the financial index and Trade Financial Index. And then it is presented that the theory and the practical significance of the research.Chapter Ⅱ:The literature review and theoretical research. It is the first time for listed companies’ financial index to put the micro-financial analysis into the an alysis of the macroeconomic situation through the form of statistical index, and so its theoretical basis can be divided into two blocks, they are economic boom theor y and the theory of financial analysis. In the beginning, this section introduces the connotation of economic boom theory, and then describes the economic boom inde x and the industry boom index. Then according to its inadequacies, there is some i nspiration to build a financial index. The second part sorts out the theory of financi al analysis, and summarizes its current status, as the theoretical basis for the reason why the industry financial index is the starting point of the financial index system.Chapter Ⅲ:The financial index. This section mainly makes an explanation to the definition of the financial index and the content and structure of the financial index system. The source of the data comes from the financial data since2007to2012quarterly of all financial and non-financial listed companies. Financial indexes are mainly divided into Debt Service Index, Profitability Index, Cash Flow Index, Operation Index, Growth Index and Synthetical Financial Index.Chapter Ⅳ:The analysis of the financial index. This part will eventually make depth analysis of the link index and the fixed base financial index to study the trend of the different financial indexes and internal relationship. On this basis, it makes correlative analysis between Industry-wide Financial Index, Industry Financial Index, Real Estate Industry and the macroeconomic to make the economic interpretation. The variables of Macroeconomic are GDP, the Economic Boom Index, the Enterprise Boom Index, the Three Industries Index and the National Real Estate Boom Index.Chapter Ⅴ:The conclusions and the suggestions. This chapter draws conclusions which are based on the foregoing contents and puts forward a number of suggestions. Finally, it points out the limitations and farther research directions.The main innovations of this paper are as follows:First, build a financial index system creatively. Break through traditional financial analysis methods that are static and have single object. Condense the complex financial data into a concise index value, which can reflect the financial status, performance and trends of listed companies at different levels synthetically and dynamically. Second, broaden the financial analysis from the micro-level to the macro-level. Change the traditional static financial analysis for the study of a single enterprise into to a dynamical reflection of the financial condition of listed companies in certain long period. Expand and deepen the use of accounting information. Third, divide financial indicators reasonably. According to the theoretical basis and practical needs, divide financial index system of listed companies into Trade Financial Index, Industry Financial Index and Industry-wide Financial Index, and subdivide the financial index into Synthetic Financial Index and Category Financial Index. There are various categories of financial indexes, such as Synthetic Financial Index, Category Financial Index, Industry Financial Index, Trade Financial Index, Regional Financial Index, Sample Financial Index and so on. But, after consulting a large amount of literature, we find that there are obvious differences among the financial ratios of the different industries. Besides, listed companies’ financial index system is established on the basis of financial ratios, so we have reason to believe that the financial index exist obvious differences among different industries. Therefore, we see the industry financial index as the starting point and the foundation of the financial index system.In addition, in the actual operation and the formation of the financial index, we also find that some indicators will miss or appear abnormally if we choose single enterprise as the object to format the financial index, to select Industry Financial index as the basis can make it easy to avoid this problem. Forth, analysis of the financial index has universal applicability. Financial index is a financial analysis tool, through which we can observe the financial condition of listed companies and look for the fluctuant law and causes of the financial index. However, due to the financial index is highly comprehensive and recapitulative, it is often difficult for us to find the law and explanation from the data directly. By using descriptive statistics and correlation analysis method, this paper has a try to explain the characteristics of the fluctuate of the financial index reasonably, to analyze the impact and relevance between each category of financial index and the Synthetic Financial Index, to look for and monitor the characteristics and differences of listed companies in different industries.Of course, it is found that there are many inadequacies in the course of writing the paper. For example, due to the dynamism of the financial index, it will be updated and improved constantly over time. The subject selected financial indicators from the first quarter of2007to the third quarter of2012, and therefore, the conclusions are applicable only in this period. Limited by the time factor, there may be some limitations in the results of the study, the listed companies’financial condition and law behind the financial index remains to be explored and mined further.In addition, the study for the industry financial index in this paper is only concentrated in the Real Estate Industry. And it is a pity that there is not yet a thorough analysis for the other industries. |
PDF Full Text Request