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Analysis of the Effects of Financial Sharing on Enterprise Working Capital Management: Taking Sinochem Holdings’ Financial Sharing Model as an Example

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DOI: 10.23977/ferm.2021.040401 | Downloads: 9 | Views: 115

Author(s)

Songqin Ye 1, Kejia Yu 1

Affiliation(s)

1 Department of Accounting, College of Finance and Economics, Jiangxi Normal University, Jiangxi, 330022, China

Corresponding Author

Kejia Yu

ABSTRACT

Recently, rapid economic and technological progress has forced innovation in financial strategies and organizational structures to match better the endogenous requirements of expanding companies and businesses. This study focuses on the financial sharing model that has gained much attention in recent years and examines the changes in the working capital management performance of Sinochem Holdings during its different development periods of financial sharing from 2012 to 2019. It finds that the implementation of Sinochem Holdings’ financial sharing model positively impacts its working capital management performance at different degrees and company development stages. The financial sharing model significantly improves the quality of financial information and process efficiency and enhances the efficiency of corporate financial processes and process standardization. In this case, companies strengthen the integration of corporate resources and hasten the dissemination of capital and information flows, thus improving working capital management performance. Finally, this study provides relevant comments for enterprises, government and industry, and accounting personnel.

KEYWORDS

Financial sharing model; working capital management performance; process management

CITE THIS PAPER

Songqin Ye, Kejia Yu. Analysis of the Effects of Financial Sharing on Enterprise Working Capital Management: Taking Sinochem Holdings’ Financial Sharing Model as an Example. Financial Engineering and Risk Management (2021) 4: 1-18. DOI: http://dx.doi.org/10.23977/ferm.2021.040401.

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