The Evaluation Of Enterprises Financial Performance Based On Innovation Capability

In July 2015,the State Council officially issued the guiding opinions on promoting the “Internet plus” action plan,and then the “Internet plus” action plan has been spread like a raging fire.It has created the new situation of the development of the Internet industry and the new situation of social and economic development under the mode of innovation2.0.It also has helped achieve the integration of Internet and traditional industry.We can often see the new terms such as “Internet plus agriculture”,“Internet plus traffic”and“Internet plus medical” etc.There is no doubt that it has been bringing both opportunities and challenges to the development of Internet companies.Due to the instability of the development prospects of Internet companies and the limitations of domestic financial markets,many Internet enterprises have difficulties in financing in China.Therefore,in order to grasp the opportunities which “Internet plus” has brought,many well-known Internet enterprises have to be listed in the United States and other overseas capital market to raise money from the stock market.So here comes the questions: How do these Internet enterprises perform in the U.S.stock market? What are the factors that affect their consolidated financial performance? In this paper,we use the data of Internet companies listed in the United States in 2014 and 2015,with a new perspective based on innovation ability and empirical methods,to analyze their financial performance.This paper is divided into five chapters: The first chapter is introduction.Firstly,it mainly introduces the background and significance of the research.Secondly,it reviews domestic and foreign literature related to the evaluation of enterprises financial performance and the Internet companies.Finally,it summarizes the research content,the research methods,the technical route and innovation of the research.The second chapter is the definition of the concept and the introduction of basic theory.Firstly,it defines Innovation Ability,the Internet companies and the evaluation of enterprises financial performance.Secondly,it introduces the theoretical basis of enterprise financial performance evaluation,such as stakeholder theory,principal-agent theory,contingency management theory,Schumpeter innovation theory.The third chapter is based on innovation ability to build financial performance evaluation index system.Firstly,itanalyses the characteristics of Internet companies.Secondly,it introduces the reasons why the Factor Analysis method is selected,such as its principles and characteristics,operation steps and applicability for this paper.Finally,it introduces indexes which are selected according to certain principles from the profitability,operational capacity,innovation ability,debt paying ability,growth ability and so no five aspects to build financial performance evaluation index system,as a preparation for the next chapter’s empirical analysis.The fourth chapter is empirical analysis.It mainly uses the Factor Analysis method with the help of the SPSS software to analysis the data of Internet companies which listed in the United States in 2014 and 2015 in order to rank and evaluate their financial performance.The fifth chapter is the empirical conclusions and recommendations.It mainly summarizes the conclusions of the previous empirical analysis on the performance evaluation of Internet companies and puts forward relevant proposals.This paper found the following results:(1)The construction of financial performance evaluation index system based on innovation capability of Internet companies listed in the U.S.is very scientific and objective.(2)The Profitability is closely related to the score and ranking of Internet companies’ comprehensive financial performance.(3)The Operating and Debt paying ability is very important for the comprehensive financial performance of Internet companies.(4)The influence of Innovation ability for Internet companies’ comprehensive financial performance should not be underestimated.(5)The development trend of Internet companies is different in different companies.The innovations of this paper lies in the following aspects:(1)It has made the innovation in the design of evaluation indicators.It adds the innovation ability index to the Internet enterprise financial performance evaluation system.(2)It designs the quantitative indicators according to the characteristics of the industry.When coming to the quantitative analysis of the innovation ability of Internet enterprises,R & D investment rate of return on investment and R & D expenses have been added in.(3)It uses the vertical comparison method of Internet industry while evaluating and analysing the Internet companies.