A Study On The Relationship Between Financial Shared Services Center And Enterprise Performance

Financial Shared Service Center(FSSC)refers to the repeated or similar financial business of the enterprise cross regional,different subsidiaries,which are integrated into an independent organization,and are handled by financial professionals in a standardized and unified business process,effectively avoid the risk of financial fraud,reduce business operating costs,improve work efficiency,improve service quality finally,to strengthen the core competitiveness of the enterprise.With the rapid development of Economic Globalization and information technology,in the process of becoming bigger and stronger,the market environment faced by enterprises is more difficult to predict.The traditional organization form and the management mode has been unable to keep up with the pace of the times,the reform and innovation of management system,organization,culture and other aspects are urgent.Financial reformation is the core of enterprise reformation.The new form of financial organization should not only meets the requirements of enterprises to reduce costs,but also achieves the goal of integrating financial resources and supporting strategic decisions.Therefore the Financial Shared Service Center came into being.Since the birth of the Financial Shared Service Center,scholars at home and abroad have done a lot of research on it.Among these the effectiveness of the implementation of Financial Shared Services has become the research hotspots of scholars at home and abroad and the focus of managers.Most of the previous scholars only take theoretical analysis and case study methods to explore the mode,significance and practice methods of FSSC,but there are few empirical research articles on the effectiveness of Financial Shared Service from the perspective of corporate performance improvement.To sum up,this paper selects eight financial indicators that reflect the comprehensive performance of enterprises,and uses the Wilcoxon rank sum test and the paired sample T test to study the impact of the implementation of Financial Shared Services on corporate performance.Considering the implementation of Financial Shared Service Center is a long process,and the effect on Corporate Performance also needs a process,in this paper,we select the enterprises that implement FFSC before 2014 as the research sample,and select the enterprises that have not implemented the FFSC as paired samples according to the matching principle of industry and scale.First,the Wilcoxon rank sum test and the paired sample T test are used to analyze the difference between the performance of the enterprises that have implemented the FFSC and the enterprises not implemented,in order to verify the first hypothesis of this paper: The financial performance of enterprises implementing FSSC is better than that of enterprises not implemented;Then,the paired firms were divided into two groups according to the median size to analyze whether the firm size would affect the effect of the implementation of the FFSC,in order to verify the second hypothesis : The larger the scale of the enterprise,the better the effect of the implementation of FFSC.At last,the paired firms were divided into two groups according to the industry to analyze whether the industry would affect the effect of the implementation of the FFSC,in order to verify the third hypothesis: The effect of the manufacturing companies are better than nonmanufacturing companies.The results show that the net profit on total assets of the enterprise has been significantly higher than that of the enterprises that have not implemented FSSC;The administrative expenses rate of the enterprise has been significantly lower than that of the enterprises that have not implemented FSSC;The net profit margin on sales,the total assets turnover and the operating cost rate have been slightly better than those of the enterprises that have not implemented the financial sharing services;The net profit on total assets of the large-scale enterprises that have implemented the FFSC are significantly higher than the large-scale enterprises without the implementation of FFSC,and the small-scale group is not significant;The net profit margin on sales and the total asset turnover of the large-scale enterprises that have implemented the FFSC have reached a significant level of 10% in the Wilcoxon rank sum test,and the small-scale group is not significant.The net profit on total assets of the manufacturing enterprises that have implemented the FFSC are significantly higher than the manufacturing enterprises without the implementation of FFSC,and the nonmanufacturing group is not significant;The total asset turnover of the manufacturing enterprises that have implemented the FFSC have reached a significant level in test,and the nonmanufacturing group is not significant.Finally,the paper puts forward some suggestions for the implementation of the FFSC.First,give full play to the role of the treasury in guiding the healthy development of FFSC.Second,enterprises cannot blindly follow the trend of building a FFSC;Third,the implementation of FFSC should not focus solely on financial indicators.