A Comprehensive Evaluation Analysis of Financial Core Competitiveness of Listed Companies

Xiaolin Chen

doi:10.5539/ijbm.v4n10p89

Abstract

Financial management is an important component of companies’ economic activities. Companies’ core competitiveness is based on the financial core competitiveness in a sense. To measure a company’s financial core competitiveness is meaningful for understanding the company’s financial management performance and building the company’s core competitiveness. This essay constitutes a set of indexes system for evaluating listed companies’ financial core competitiveness. According to data from 15 steel companies listed in Shenzhen Stock Exchange, this essay analyzes and evaluates listed companies’ financial core competitiveness, and finally advances several suggestions for cultivating and improving listed companies’ financial core competitiveness.

Highlights

Financial management is an important component of companies’ economic activities
Considering scholars’ different understandings toward the essence of core competitiveness due to different views of integration, knowledge, culture, and organization, the financial core competitiveness refers to a series of special, excellent, dynamic corporate financial competitive competences rooted in corporate financial management system, taking knowledge and innovation as the basic core
The relevant issues about financial core competitiveness can be regarded as a system in which different elements and rings influence one another

Summary

Introduction

Financial management is an important component of companies’ economic activities. Companies’ core competitiveness is based on the financial core competitiveness in a sense. X1 ------ Percentage of high and higher financial employees; X2 ------ Information level of financial management information system; X3 ------ Industrial rank of total assets; X4 ------ Industrial rank of financing scale in recent three years; X5 ------ Corporate governance index; X6 ------ Internal control; X7 ------ Z value; X8 ------ Investment growth ratio; X9 ------ Industrial rank of cash flow; X10 ------ Cash dividend payout ratio.

Results

Conclusion