Research On The Correlation Of Enterprise Capability And Financial Performance

With the globalization of economic development, countries are faced with many opportunities and challenges. The rapid development of science and technology accelerate the pace of product updates, multinational operation have to concentrate on the various needs of the consumers, political and economic situation of instability, all of these make the enterprise development face severe challenges. The sharp changes of macro-environment made it necessary to pay more attention to the study of enterprise capability. This provides practical significance for the research on the relationship between enterprise capability and financial performance. Although there is plenty of research on enterprise capability, but there are serious differences when applying the theory to solve practical problems. So the theories of enterprise capabilities are still in tattered state. This is its theoretical purpose of the research on the relationship between enterprise capability and financial performance. In addition, although Goodwill has been on the balance sheet as an account after new accounting standards implemented but there exists various controversial on definition of the accountancy sector and how to measure it and all of other aspects of Goodwill. There are scholars suggested it is the integrated capability of the enterprise. Therefore the research on the relationship between enterprise capability and financial performance can provide information to help the research on Goodwill.In this paper collected collated, analysis and read a number of related research based. On the one hand, this paper made a clear definition of the enterprise capabilities, structure and targets set for the back of the indicator system and Model lays a theoretical foundation for the research. On the other hand, this paper recalled current research on enterprise capability and financial performance home and abroad, and laid the theoretical basis of this study.Secondly, state the basic theories of this paper——Enterprise resource theory. This paper reviewed the domestic and international research on enterprise resource theory and summarized the main point of the theory. This paper uses enterprise resource theory to analyzes the relationship between the three dimensions of enterprise capability and financial performance.This paper provides four hypothesizes:(1) Comprehensive operation efficiency and financial performance is positively related (2) Industry potential and financial performance is positively related (3) Development potential and financial performance is positively related to. (4) Different indicators of enterprise capability makes different contribution to financial performance.Finally, there is the empirical research. This paper Stetted indicators for enterprise capability and financial performance.The principle are objective,quantitative,data is easy to obtain and no overlapping. This paper summarizes the stock market of shanghai and Shenzhen and makes a listed companies to the sample. Excluding the companies with PT,ST and SST class, insurance companies and financial development expenditure is zero and incomplete data, there are 353 data. Then apply spssl7 7.0 statistical analysis software for data processing. The methods of analysis have are descriptive of statistical analyses, the dependency analysis and multiple regression.By analyzing the validation text of four, the enterprise capability and financial performance is positively related. And different factors of enterprise capability make different contribution to financial performance. In the last of this paper is the suggestion and inadequate.which may be helpful to the relative research.