Research On Management & Control To Financial Capability Of Datang International Power Generation Co., LTD

Research on enterprise competence theory has gradually become a focus of management research since 1990s.From a long-term perspective, the competitive advantage of enterprises mainly comes from lower costs than competitors’, especially under the background of the current system in which sales price to power network is regulated by the government. The sustainable development of enterprises depends more on its core competitive ability. In recent years, academic circles for the study of the core competence of enterprises have gradually penetrated into special resources which have competitive advantages in various functional areas. Financial resource is the most important part of the daily management of various resources. Financial management is the core of enterprise management, so enterprise financial competence theory came into being exactly under these circumstances. Financial competence theory originated from enterprise competence theory. As the core competence of enterprises, financial capability is getting more attention theoretically and practically, while financial capability is the bottleneck of overall competitive ability of enterprises. The development history of successful enterprises attested that there must be good financial management in successful enterprises as a support. Whether financial decisions and financial operations correct or not determines the fate of an enterprise. The financial strengths of an enterprise ultimately determine how far it can go, so there is no exception to power generation enterprises.In the paper, the management control of financial capability of Datang International Power Generation Co., LTD (short for Datang International) is chosen as the analysis object. Through the systematical analysis of related theory, internal relations among basic ingredients of enterprise competence theory and its influential factors can be found out. From the non-static perspective, a three level evaluation index system is established, which is a comprehensive reflection of enterprise financial capability covering three aspects including financial activity ability, financial management ability and financial performance capability with a total of 18 indicators. Giving a comprehensive evaluation to the system of Datang International and a benchmark with other representative listed power generation companies in the industry, we’ll analyze and find out problems and deficiencies existing in the overall capacity of Datang International financial management control. Relevant measures and suggestions for improvement can be put forward by designing management control plans of Datang International financial capacity. This not only provides a basis and direction for enhancing financial ability of Datang International in the future, but also provides reference for other listed electric power enterprises and power generation enterprises to improve their financial capability. At the same time, it also plays an important part in the in-depth study of enterprise financial capability and relevant evaluation index system.