The Research Of Evaluation Creterion On Finacial System Compliance Management In Petrochemical Companies Around China

In recent years, many executives are suspected of serious disciplinary cases. It reveals that to some extent the compliance management of financial system is out of control, threatening companies'operating safety, and lacking the evaluation criterions is difficult to guide companies in financial system compliance management. In the meanwhile, this article has been made an exploratory research which direct at the compliance management of financial system, aimed at establish the compliance management of financial system and provide a guide to company's compliance.This article analyses the reason why the compliance management of financial system is out of control in petrochemical companies around China, and then being guided by the new Enterprise Financial Rules, the author applies the Luo's classic model using financial data in China's petrochemical companies from 2007 to 2014. Finally, an evaluation criterion for financial system compliance management is designed and the criterion rationality is tested in the case of Petro China. This article studies the evaluation criterion for financial system compliance management and builds the qualitative and quantitative evaluation criterion. Conclusions have been drawn as follows. Financial system compliance management problems are existed in most China's listed petrochemical companies in some degree. Financial data of abnormal on-the-job consumption from 2007 to 2014 shows that sample mean is 7.12 hundred million and the maximum value is 606 hundred million. Eight Regulations inhibit executives'on-the-job consumption in some degree. The number of executives'on-the-job consumption is an important standard in evaluating the financial system compliance, and factors affecting executives' on-the-job consumption are total assets at the end of the term, changes in main business revenue, net fixed assets, total inventories and total staff. The empirical results show that these factors are significant elements in composes of financial compliance evaluation criterion, but the effect is indirect.This article makes up the deficiency of the research in financial system compliance management and supports the research in improving the evaluation criterions of financial system compliance management.