Does The Establishment Of The Financial Shared Service Center Improve The Efficiency Of Working Capital Management?

The current rapid social and economic development,for many large group companies,a basic challenge is how to rationally allocate internal resources in the global strategic layout to improve corporate operations and decision-making efficiency.Companies in a highly competitive environment are eager to implement innovative management models.Working capital management,as an indispensable part of the company's operations,will directly affect the day-to-day operations and profitability of the company.How to improve the efficiency of working capital management is very important for the development of the company.The innovation of financial management models is imminent.The financial shared service center strengthened the control of capital flow through standardization of financial business processes.In particular,the accounts receivable and payable module of the financial shared service center has more centralized and standardized accounts receivable and accounts payable management,which is conducive to accelerating the turnover of working capital and improving working capital management efficiency.Therefore,this article will discuss how to improve the efficiency of working capital management from the perspective of establishing a financial shared service center.This article selects listed companies that have established a financial sharing service center among China's A-share listed companies from 2004 to 2018.Firstly,companies that have not established financial shared service center are used as the control group by using the propensity score matching method,then used multiple regression methods to process the samples of the processing group and the control group to explore the impact of the establishment of the financial shared service center on the efficiency of working capital management and the role of corporate governance in regulating the relationship between the financial shared service center and the working capital management efficiency.Empirical research finds that the establishment of the financial shared service center has a positive correlation with the working capital management efficiency;The moderating role of corporate governance in the relationship between the financial shared service center and working capital management efficiency:the size of the board of directors does not have a moderating role in the relationship between the two;the concentration of equity has a suppressing role in the relationship between the two;salary incentives have a promotion in the relationship effect.This article establishes the relationship between the financial sharing service center and working capital management efficiency through empirical testing methods.It provides a theoretical reference for companies to promote the construction of financial shared service centers and improve the efficiency of financial shared service centers.This article further explores the relationship between the financial shared service center and working capital management efficiency from the perspective of corporate governance.It conducts an empirical test on the role of board size,equity concentration,and salary incentives.It is of great significance for an enterprise to improve its financial management system and formulate a reasonable corporate governance structure for the establishment of a financial shared service center to speed up capital operations,improve the efficiency of working capital management,and improve the company's performance.