Research On The Influence Of Financial Shared Service On The Working Capital Management Performance Of Listed Electric Household Appliance Enterprises

The tide of globalization and informatization rise rapidly since entering the 21 st century,the structure and management concept of enterprises also have to make the transformation actively to meet the challenges of the tide.Financial Shared Service Center(FSSC)is a new way of enterprise financial management,it combined with the mobile Internet,big data analysis,cloud computing and Internet of Things technology.FSSC relies on information technology and financial business process treatment,it optimizes the organizational structure,standardizes system process and improves process efficiency,reduces operating costs,improves decision support,and creates enterprise value for the purpose.It services internal and external customers with professional,standardized service management model,and gradually become the mainstream of the financial management model among enterprises.Working capital is the running blood of an enterprise,and it related to its fate: the short of working capital will bring operational risks,while the extra will lead to low efficiency of resource utilization.The level of working capital management often determines the profitability and value of an enterprise.How to improve the ability of management of working capital and maximizing the effectiveness of working capital’s utilization while avoiding risks is one of the most concerned issues in financial management in both academic and practical circles.FSSC,as a new financial management mode,will undoubtedly have a corresponding impact on the working capital’s management performance of enterprises.Although there are abundant researches on both the FSSC and working capital’s management,there are only few literatures studying the influence on working capital’s management performance because of FSSC,let alone the influence mechanism of financial sharing service on working capital management performance.This article chooses Qingdao Haier and GREE Electric as analysis cases,one carries out the FSSC and the other is not,making comparisons between them from two angles,factors and channels.This paper based on Qingdao Haier’s financial digital from 2007 to 2017 and the same of GREE Electric,studied how the FSSC affects the management of working capital of the enterprise.It is found that working capital management performance varies in different stages of financial shared mode implementation.Financial shared mode not only improves process efficiency,but also increases the accuracy and the transparency of financial information,through the process standardization and resource integration,speed up the cash flow and information flow transmission,increase the rate of accounting synchronization and payment collection rate,strengthen the cash,inventory management,rationalize circulation channels of working capital,so as to improve working capital management performance.As the leading enterprises of household electric in China,Qingdao Haier and GREE Electric are representative of their successful or inadequate management of working capital.The study combined with the financial sharing model is expected to provide experience and reference for other enterprises in the same industry and other large groups to implement the financial sharing model.At the same time,the research on the mechanism of the influence of financial sharing mode on enterprise working capital management is of certain significance to enrich the connotation of financial management knowledge,broaden the scope and field of financial management research,and deepen the understanding of financial sharing mode.