Research On The Financial Competitiveness Evaluation Of China’s Listed Insurance Companies Based On Grey Correlation Analysis

BACKGROUNDAs one of the three pillars of the financial sector, the insurance industry is the important force to promote the development of the economy. Since the1980, China recover the insurance business, insurance industry present a good momentum of sustained and rapid development. With the deepening of the reform of China’s enterprises, speed up the marketization process, the trend of global economic integration is growing stronger day by day, Since China’s accession to the WTO, Chinese insurance market competition main body of the quantity and quality of further improve, between the insurance companies, national insurance company competition intensified. Compared with developed countries in the world insurance industry, the development of the insurance industry is still in its primary stage in our country, by contrast, the insurance industry in China is facing a profit ability is weak, research and development strength is not high, competitiveness is not strong pressure of competition. After more than20years of development, the capital market in China now stands on the new starting point, wait for the new development and breakthrough, yet a sustained downturn in recent years the domestic capital market, the insurance company for many times in the annual report mentioned influenced by capital market downturn, the company’s business growth and a decline in investment income. Insurance companies in our country in this unfavorable external environment, stand out from the Chinese and foreign monopoly competition slit, must constantly seek new breakthrough, start from scratch, cultivate their own unique competitive advantage. Financial management is the core of enterprise management, and as for the insurance industry, high capital dependence financial as the important pillar of development, how to do a good job of financial management, digging their own potential, to promote financial competitiveness, it is insurance company focus on the important issues.Western scholars research on the competitiveness of started earlier, research has been increasingly mature, the domestic scholars on the basis of competitiveness research, based on the relevant theory of financial management, financial competitiveness, and achieved some results. Financial competitiveness is the enterprise in the long-term dynamic in the process of operation and management, unique by the enterprise all kinds of financial resources and financial capacity coordination integration of comprehensive ability. Financial competitiveness is put forward, will increase the financial management of enterprises is more important to a higher level. At present, the financial competitiveness of the enterprise has caused widespread concern in academia, but little research on insurance company financial competitiveness, its theoretical research mainly focused on the general enterprise, without considering the special industry’s financial personality. In addition, in real life, most insurance companies in our country is not the competitiveness of the financial aspects of cause enough attention. Therefore, the insurance company’s financial competitiveness research has important theoretical significance and practical significance.PURPOSEThe purpose of this study are as follows:This paper aims to the enterprise’s financial competitiveness, summarized the theoretical study and summary on the basis of the financial competitiveness of the insurance company for qualitative identification and quantitative analysis, combining the characteristics of the insurance industry, construct the financial competitiveness evaluation index system of insurance company.Using the grey correlation analysis to the present stage our country four listed insurance company’s financial competitiveness evaluation analysis, according to the evaluation results analyses of current situation of financial competitiveness of China’s listed insurance companies, and through the grey correlation coefficient analysis of the strengths and weaknesses of each insurance company financial competitiveness, corresponding policy Suggestions are put forward.Through the research conclusion of this article, I hope to circ regulatory policies, such as the decision-making behavior of investors and the insurance company’s own financial management to provide theoretical reference.MAIN CONTENT AND VIEWThe main content of this paper includes the following several parts:The first chapter is introduction, respectively from the research background and significance of this article, the research of the technical route, research method and the main contribution and deficiency of four aspects to introduce the thesis writing background and the overall framework, the groundwork for below.The second chapter for literature review section. This chapter mainly from the enterprise’s financial competitiveness and enterprise financial competitiveness evaluation of two aspects, respectively from the angles of foreign and domestic research on the competitiveness of enterprise financial were summarized, laid a solid foundation for the following research.The third chapter is theoretical analysis part of the insurance company’s financial competitiveness. The first section of this chapter is the analysis of financial competitiveness theory, thought of strategic management theory, resource allocation theory and the theory of enterprise competence is the source of enterprise’s financial competitiveness theory and the driving factors. Financial competitiveness of insurance companies is in the second quarter of the qualitative analysis, from the insurance company’s financial competitiveness concept, characteristics, influence factors of three aspects:financial competitiveness of insurance company for qualitative identification. The third section is the quantitative analysis of the insurance company’s financial competitiveness, through a certain method to establish evaluation index system for quantitative evaluation of financial competitiveness of insurance companies. The fourth section is in the first three quarters, on the basis of combining the characteristics of the insurance company to complete construction of the insurance company’s financial competitiveness evaluation system. This chapter and the third chapter is the theoretical basis for this article, it is insurance company financial competitiveness evaluation theory.The fourth chapter is the case study part of this article. This chapter first of China’s insurance industry and its financial development status are introduced and analyzed. Then, on this basis, this chapter constructs the evaluation index system of financial competitiveness of China’s listed insurance companies, using the grey correlation analysis method in detail to show the insurance of our country listed company financial competitiveness evaluation calculation process and the calculation results are obtained. Through grey correlation sort can intuitive understanding of insurance of our country listed company’s financial competitiveness rankings, by the grey relation coefficient of each index to judge the competitiveness of enterprise financial defects. Finally, this chapter of insurance of our country listed company financial competitiveness evaluation results are analyzed in detail. At the same time, the insurance company’s financial competitiveness of ascension from the macroscopic and microscopic two aspects put forward policy suggestions.The fifth chapter is the conclusion and direction part of this article. According to the result of insurance of our country listed company financial competitiveness evaluation research on insurance company’s financial competitiveness are summarized. And, in the selection of sample selection and evaluation of this article based on the analysis of the limitations of, in this paper, the further research direction was discussed.CONTRIBUTIONSIn this paper, the main contribution in the following three aspects:Research perspectives. At present, China’s financial competitiveness evaluation research mainly based on the general manufacturing industry, the financial sector and other special industry in less. This article from the perspective of the insurance industry, insurance company’s financial competitiveness, on the one hand, enrich the enterprise financial competitiveness evaluation research in our country, on the other hand the financial competitiveness of insurance industry and so on financial evaluation has a certain guiding significance.Index selection level. On the insurance company financial competitiveness index selection, although this article draw lessons from existing research results, but the author through the analysis of the insurance company annual reports, combining insurance regulation indexes and evaluation standards of international credit rating agency, accordingly increase and reducing the previous evaluation index is optimized and improved, makes the index into the insurance industry characteristics, the insurance industry has a certain characteristic, for subsequent financial indicators choice has reference significance for a particular industry.Evaluation system build level. Based on the building insurance company financial competitiveness evaluation index system, considering the financial characteristics of the insurance industry, analysis of the insurance company specific elements of financial competitiveness, expand existing financial competitiveness evaluation system, not to copy.