Improvement of Financial Management: A Case of A Chinese Telecommunication Enterprise

Abstract

China Unicom also achieved some results in centralized financial management, such as strengthening financial management and institutional construction, effectively improving financial supervision, preventing financial risks, optimizing resource allocation, and improving enterprise management. Therefore, the research objectives were as follows: 1) To analyze the effect of China Unicom’s financial management on enterprise performance. 2) To propose optimization strategies for China Unicom’s financial management that contributed to financial decisions and business outcomes. To achieve these objectives, this research mainly adopted a mixed methods approach, utilizing statistical data, linear regressions, and interviews to obtain necessary information and analyze the research objectives.

The results show that: From the results of quantitative analysis, the asset-liability ratio, current asset-liability ratio and equity concentration have a negative impact on the return on assets of China Unicom, which indicates that these 3 variables have a significant linear relationship with the return on assets of China Unicom. On the other hand, non-interest-bearing debt ratio and total asset scale are positively correlated with China Unicom’s return on assets, indicating that the increase of these 2 variables can improve China Unicom’s return on assets. From the qualitative analysis results of this paper, China Unicom should further establish a sound financial planning and budget system on the basis of the existing management system. By developing a detailed and feasible financial plan and integrating it with the overall strategic objectives of the company, we ensure the rational allocation of resources and the efficient use of funds. At the same time, budget adjustment and control should be carried out in time during the implementation process to adapt to market changes.