Study On Financial Core Competence Based On Corporate Governance

The enterprise ability theory believes that an enterprise is an ability system in nature including financial ability, entrepreneurship ability, management ability, marketing ability and so on. Financial ability includes financial activity ability, financial performance ability and financial management ability. The concept of financial core competence is a combination of enterprise ability theory and financial management theory. The research on financial core competence is helpful to determine corporate financial management objective, regulate corporate financial management behavior, coordinate corporate financial ability and optimize the structure of corporate governance.This thesis put forward a concept combined corporate governance theory and practice that financial core competence is a comprehensive capacity which can reflect corporate governance effect and conform long term objectives with serving the enterprise's sustainable and profitable growth ability as a core under the background of perfecting organization frame among operator , board of stockholder and border of director. Companies must analyze the forming mechanism deeply in order to cultivate and improve financial core competence. Financial core competence is gradually formed by utilizing the existing or potential finance resource and integrating the basic financial ability continuously under the established financial strategy. The comprehensive evaluation model we build by analytic hierarchy process (AHP) takes full consideration to the influence of corporate governance. We can evaluate financial core competence situation more scientifically through this model. It is a strategy for an enterprise to cultivate the financial core competence. The thesis proposes approaches and specific measures to cultivate and improve financial core competence based on corporate governance.This thesis researches financial core competence under the background of corporate governance and practice which aims to expand the scope and depth of the theory of financial core competence. It has guidance meaning to cultivate and improve company financial competence and reference action to perfect corporate governance theory and build modern enterprises system.