Research On Business Model And Financial Features Of Enterprise

This paper is based on the listed company industry categories issued by the China Securities Regulatory Commission in the second quarter of 2014. It sampled 1080 qualified A share companies listed either on Shanghai Stock Exchange or Shenzhen Stock Exchange, whose data were analyzed during the past seven years from 2007 to 2013, so as to test the relevance between business model and financial features. The test result is in line with the hypothesis that identical or similar business models share identical or similar financial features. In order to verify the test result, we took Wanfu Biotechnology (Hunan) Agricultural Development Co., Ltd. as an example, and performed further research on the relevance between business model and financial feature by using individual research method, and we reached same conclusions as our test, which may be concluded as follows:I.There are inherent connections between financial features and business model. Accounting information not only reveals and expresses the business model operation at the accounting level; it also is an accounting map of the business model. Anything involved in the business model operation that can be measured in currency will be recorded in the accounting system. Specific business model will generate corresponding accounting information; hence, accounting information is deeply marked by features of a company's business model. Financial indicator as the main presentation of financial features is the extraction of accounting information standardization. Financial indicator origins from accounting information but overrides accounting information. It creates a bridge and a bond between the production and use of accounting information. Financial features and business model are related to each other, i.e. identical or similar business models share identical or similar financial features; andII.Accounting information could be tested. The common financial features of companies sharing identical or similar business model could be a "ruler" to measure the reliability of the target company's accounting information.The conclusions of this paper mean thatI.It will give rise to a totally new model of testing the reliability of accounting information, of which, the starting point is the business model, and the destination is the testing of the reliability of accounting information, the bridge is accounting information and financial indicator, while the core is the controlled group of accounting information-common financial features shared among identical or similar business model. The inter-restriction between accounting system and non-accounting system determines the objectivity and reliability of the operation of this model as well as the result thereof;II.It will create a common comparing basis-business model-for accounting information of different entities, and this comparing basis comes not from accounting itself, but from the company that produces such accounting. Company gives rise to accounting as well as comparing basis. This comparing basis is an obstacle to human manipulations of the accounting system, as any accounting recognition, measurement, reporting, and disclosure inconsistent with the business model will be revealed under this comparing basis;III.It will create a new way to predict future financial features of a company. Business model will be the important tool in researching and using financial features, and play a vital role in predicting the future financial feature's development trend of a target company;IV.The development and application of financial feature will embrace a brighter future as it is the production of accounting system and relates to business model. The development and application of financial feature will also in return stimulate the innovation of accounting information use system;V.The use of accounting information will step into group use period. The introduction of business model into accounting information study has two contributions, one is that we can determine whether the accounting information of the target company is reliable and predict the future financial feature development trend of the target company by searching for financial features of a group of companies through collecting, analyzing, researching, studying and comparing the business model of such group of companies; the other contribution is that the production and use of accounting information will step into a big data period, which will bring vitality to the accounting work; andVI.It may be possible to achieve information connection, information communication, and information share between accounting system and company management system one of whose key factors is business model.