The Original Instruction Of Chinese Listed Companies' Financial Index

After Taylor established scientific management theories in 1891, researches concerning the traditional financial ratio analysis started, and always concentrated on two realms: the comprehensively financial evaluation system and the financial early-warning system. These researches have got highly appreciation, being the important guide of the development of company. But we have to see that these researches are still the analyses and evaluations to the internal financial standing of company. Although the economic prosperity theories have been successfully introduced into the financial evaluation system and make company crises early-warning theories come into being, it still focused on the internal company, belonging to the category of microeconomic research, which could not reflect the macroscopically development of society. So from this point, we combine the macro-economic prosperity and micro-financial analysis together again, try to apply them into the macro-economic kingdom, analyzing the holistic macro financial standing and its trends. But the internal analyses of company are mainly through the analyses of financial ratios, and as every one knows that there are a great many financial ratios, just using all of them to reflect the situation of entire social economics is unpractical and disordered. If there is one index which could get over all above problems and still reflect entire social financial characteristics, it could be the best way.So, we established a Listed Companies'Financial Index, different from the traditional financial analyzing methods, this financial index has changed the traditional research mode which focused on the internal, single temporal and single economic unit's analysis into a new point of view: researching the macro financial situation and development of entire listed companies and its conceivable future developing trends. We believe this financial index will play a great important role in social practice.On the one hand, government could understand the listed companies' financial standing of the whole market and industries in time, and then draw up the relevant macroscopic economic policies, monitoring the financial movement; still the financial index could be applied towards the drawn up public finance, tax policies and investment programs, anglicizing the economic consequences of the policies in time; particularly when the specific financial index number appears an excrescent track, the government can adjust its relevant macroscopic economic policies on these grounds, carrying on the valid program to the related professions or tectonic plates. On the other hand, the business enterprises and investors can also ask the comprehensive and categorized financial index for help, make sure the financial position of the place horizontally, discover the shortage of the business enterprises'historical evolution lenthways relatively, adjust the business enterprises'developing strategy in time, resolve the problems existed in financial economic activities; related of other benefited, may also help them work out a related benefits decision on these grounds.This text is mainly around the establishment of the listed companies'financial index number(LCFI), adopts the substantial evidence combining together with norm research, following the"theories contact fulfillment and practices examine theories" understanding method to elaborate, combines macroscopic economic analysis and the economic prosperity theories together with traditional financial ratios, and establishes the basic theories and concrete methods of listed companies'financial index; puts forward the characteristics, functions, basic assumptions of the index number, compares the advantages and disadvantages of subjective weight endowing method with objective weight endowing method and assistant with AHP carries on the weight endowing towards the selected basic financial ratios. At last, we establishes a simple financial index and finds that the financial index could tell the financial situation and developing trends of specified group of listed companies effectively, having excellent directive practicing and academic significances.