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Professional thesis
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Financial Shared Service Center and Corporate Investment Value: The Empirical Research Based on A-Share Listed Companies in Shanghai and Shenzhen

ContributorsZhang, Zhiling
Number of pages44
Imprimatur date2023
Defense date2023
Abstract

With the development of society, domestic companies are being exposed to fiercer market competition and more complicated operation environment, and are pushed to consider digital transition from the perspective of strategy. As vital back- office department, with the help of cutting-edged technologies such as “Next- generation information” and theories such as Business Process Re-engineering, finance department has new breakthroughs: Shared Service Center. Finance gradually moving from back office to front side by integrating massive amounts of financial data, stimulating the innovation-driven potential of data. Finance is currently in the era of digital transformation, and is expected to provide sufficient theoretical basis for enterprises' business decisions and creating value. Finance shared service center has been more and more welcomed since it was introduced to China at the beginning of this century, and the number of researches on finance shared service center in China is increasing. The results of existing studies are relatively consistent. Current study about finance shared service center is mostly about the internal impact, while the study for the impact of finance shared service center on external evaluation of enterprises is limited.

With the calculation for the market response after the company applied finance shared service center, it is found that the company has significant and positive market response in three years after the destruction. In addition, using the two enterprise characteristics, geographic dispersion, and business diversification, to classify the sample, it is found that companies with high geographic dispersion or low business diversification have more positive market response after applying finance shared service center. However, using the two indicators as explanatory variable, it is found that geographic dispersion does not have significant correlation with market response, and business diversification has significant negative correlation with market response. This may be due to that investors are not clear with the mechanism of finance shared service center with the problems when companies apply geographic dispersion, and business diversification.

With more domestic enterprises implementing financial digital transformation, the impact of finance shared service center on comprehensive aspects of enterprises requires more in-depth understanding to make theoretical research guide enterprises. Furthermore, when enterprises plan to implement or operate finance shared service center, they need to adapt with companies’ own characteristics to maximize the utility of finance shared service center. Finally, the capital market needs to be more aware of how finance shared service center works, and can then have more comprehensive judgement about the enterprise performance after companies apply finance shared service center.

eng
Keywords
  • Finance Shared Service Center
  • Market Response
  • Business Diversification
  • Geographical Dispersion
Citation (ISO format)
ZHANG, Zhiling. Financial Shared Service Center and Corporate Investment Value: The Empirical Research Based on A-Share Listed Companies in Shanghai and Shenzhen. 2023.
Main files (1)
Thesis
accessLevelPublic
Identifiers
  • PID : unige:177588
  • Thesis number : 0024
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Creation06/03/2024 12:22:11 PM
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