| The national "Twelfth Five-Year" plan explicitly mentions that the transformation of development pattern and industrial restructuring should be the guarantee of sustained economic growth. Meanwhile, enterprise as an important market participant is the core in promoting economic growth. Consequently, promoting the development of enterprises should be a priority for all. However, the current situation of financial management of enterprises is not optimistic. The level of financial management in China is far away from meeting international standards. The primary cause is that there is a considerable gap about the ability of financial management between domestic and international enterprises such as management deficiency of cash, low level of informatization on financial information, comprehensive budgeting that exist in name only, absence of philosophy and method of modern financial management, low ability of joining capital market and so on. Hence, how to upgrade and improve the ability of financial management has become a significant issue needed to be solved urgently. The key is to strengthen the ability of enterprise on modern financial management. On the one hand, the ability of financial management needs to be addressed systematically and defined scientifically in theory in order to construct an integrated index system. The enterprise can apply a set of quantitative and operable index to measure the ability of financial management to find out the gap with requirements and advanced enterprises and catch up by learning from each other finally. On the other hand, government’s functional departments can set a scientific, rational and effective authentication and evaluation index system according to the index system of financial management ability. This system can guide and promote the enterprise to increase input on human, material and financial to strengthen and value the financial management. And the ability and level of enterprise financial management can also get promoted by this system as well.This paper has positive theoretical and practical meanings. Theoretically, this paper is helpful to make more explicit the definition of enterprise financial management ability to fill the blanks and to resolve the issues about the authentication system on enterprise financial management ability in previous research. Practically, first and foremost, for enterprises the authentication on enterprise financial management ability can drive the enterprises to employ modern financial management method and to upgrade the management innovation ability. So the backward situation of enterprise management in our country can get changed and the gap with advanced enterprises in developed countries can be narrowed. Secondly, for government, it is helpful to change the way to support enterprises by financial departments and other government administrations to play their functions in macro-adjustment and control effectively. Especially under the modern market economy condition, the financial departments can play an important role in supporting and promoting the development of enterprises and in strengthening the function about the financial management of enterprises. Beyond that, authentication system on enterprise financial management ability can provides basis for financial departments to allocate financial funding, launch policy support funding and introduce policies on support the enterprises’development. Thirdly, for stakeholders, authentication system offers the investors, creditors, suppliers, customers and other stakeholders the evidence to judge the ability of enterprises on financial management and enterprise management in order to judge the investment prospect and to urge the enterprises to continuously create values as well.This paper gives the background, meaning, method, main innovations and deficiency of this research in the introduction part.In the following second chapter, by analyzing the resource school, ability school and dynamic company theory, this paper divide the essence of enterprise ability into three aspects:technical ability, functional ability (product development ability, production ability, marketing ability) and management ability. In management ability, this paper focuses on financial management, discuss the development of financial management theory, and analyze the content and function of financial management; define ability school as the underlying theory to define the contents of financial management ability. This paper points out that financial management ability is totally different with financial ability. When the enterprise is operating its financial strategy, the enterprise organizes different kinds of financial activities, allocate internal and external financial resources, and integrate internal and external financial relationships with the sustainable innovation and learning ability as the core. During the operation of financial strategy, the enterprise also has to pay attention to evade financial risks. The content of financial management ability is the exclusive resources and key skills owned or formed in a series of these activities.Chapter3put forward the concept of six factors that constitute the financial management ability a in an innovative way including financial strategy management ability, innovation and learning ability, internal resources allocation ability, external resources integration ability, risk management ability and financial performance (value creation) ability (dimension). The dimension of innovation and learning ability is raised on the foundation that development is the fundamental principle for enterprises. As a result, innovation and learning ability is the basis to improve financial management ability comprehensively. Financial strategy is an important sub-strategy of enterprise strategy so that the financial management ability is of great significance to support the entire enterprise strategy. Because the development of enterprise lies in the max revenue with minimum resources, this requires the internal resources allocation ability and external resources integration ability. The development of enterprise must persist in overall consideration and managing risk as well, so the safety requires the risk management ability. Finally, the performance of enterprises muse is reflected by financial statements, so financial performance dimension is proposed. This chapter states the content, significance and specific indexes of these six factors (dimension) respectively on the basis of the analysis on correlation of these six factors.Chapter4systematically expounds the related contents of enterprise financial management in our country based on the "Financial Regulations for Enterprises" which is closed related to enterprise financial management. Through systematically analyzing the basic components of current enterprise financial management in China, we can a complete comparison with the contents of financial management ability in theory to set precondition to identify the existing problems in enterprise financial management ability in China. Throng reviewing the deep-seated problems in current enterprises financial management which are results of lack of financial management ability. There are ten major problems in financial management in China:unreasonable capital structure due to the of singularity property right structure, incomplete structure for corporate governance, lack of CFO system, lagging transformation of financial management functions, irrational financial control and management system, poor and inefficient funding management, weak and usefulness of financial budget especially the comprehensive budget, low level of informatization on financial information and make slow progress, poor financial information quality thanks to inefficiency of financial motivation and restriction and flawed financial talent group. The most effective way is to set a scientific authentication and evaluation index system on financial management ability which can greatly guide and promote the enterprise financial management ability. This is meaningful for the development of market economy, increasing the core competitive power of enterprises, transforming government functions and so on. Government launches the authentication system on financial management ability including public management theory, institutional economics theory and management control theory. From the angle of public management, the government has the function of public management. And authentication as an indirect management approach reflected the transforming government functions that pass the information about value creation ability of enterprises to the market, guide movement of resource to more competitive enterprises, and propel better social resource allocation. From the angle of institutional economics theory, authentication as an institutional arrangement can encourage enterprises externalizes their internal information. As result, stakeholders can judge the investment value by obtaining authentication t information about the financial management ability. This can partly reduce the information asymmetry problem in order to ease principal-agent problem. From the angle of management control theory, authentication as an evaluation of the performance of financial control can be separated into control effects including human resource, information, production, marketing and so on. Consequently, the full view of management control can be reflected by the financial control to encourage enterprises identify and solve, problems in management in time so as to achieve healthy sustainable development in a right direction.Chapter5discusses this paper practically and selectively references the successful experience of ISO9000, credit-evaluation system and business school certification system. This paper details and summarizes the authentication processes, index system, authentication pattern and functional roles of previous three authentication systems in order to offer guidance of the implement of authentication on financial management ability in China.In chapter6, according to six index systems of enterprise financial management ability constructed in theory, a practical index system constituted by15first-class indexes,27second-class indexes and64three-class indexes is finally built by means of expert interviews, questionnaire on key points and so on. Every factor of financial management ability contains2to3first-class indexes:as financial strategy is a sub-strategy of enterprise strategy, financial strategy management ability is measured by rationality of financial strategy, rationality of property right structure and rationality of corporate governance structure based on property right structure and corporate governance structure; innovation and learning ability is largely reflected by the improvement of competencies of the executive and finance staff which contains two indexes:the role of middle and senior financial managers and construction of financial talent group; resources integration ability is measured by informationization and management level of financial information, management level of comprehensive budget and level of funding management which are derived from efficient allocation of internal resources and utility maximization; organizational and coordination ability which established in the integration of all available external resources contains three indexes including industrial-financial business model, contact with capital market and coordination of stakeholders; risk management ability which based on the precaution of financial and other risks and coordination of the relationships between long and short, part and overall, nearsighted and far-sighted can be measured by two indexes including level of financial risk management and level of control of overall risk; financial performance ability reflected by financial statements and financial performance can be measured by quality of financial statements and effect of financial management. And chapter7demonstrates the detailed authentication method and standards as well.Chapter7is aimed at the problem how to implement the authentication of financial management ability. It is necessary to clarify the related organization and requirements and implementation process of authentication. An information service platform of authentication information of financial management ability should be set up and the application fields of authentication results are also illustrated. The confirmation principle of authentication of financial management ability must be government agencies to confirm the qualification of applicant applying for authentication principles and to carry out supervision. The authentication principles can be accounting firm and futures-related business, property assessment institutions and credit rating agency qualified in securities. The authentication should choose a combination of compulsory authentication and voluntary authentication. The final part elaborates on the process of authentication of financial management ability and clarifies the application fields of authentication results. |
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