The Impact of Financial Shared Service on Firm Performance—— An Empirical Study Utilizing Data From the A-Share Market

Abstract

Under the impetus of far-reaching evolution within the digital economy, financial shared service,a management model features efficient operations and optimal resource allocation, have been widely adopted in corporate financial management. Employing A-share listed companies as empirical subjects, this research specifies a fixed effect model to quantify the impact of financial shared service adoption on operational performance metrics. The findings reveal that the construction of financial shared services exerts a positive impact on firm performance. Specifically, the effect of enhancing firm performance through financial shared services becomes increasingly pronounced as the duration of their implementation extends. Notably, in non-manufacturing firms, establishing financial shared services negatively relates to firm performance, presumably due to the conflict between their standardized model and personalized business needs, causing higher communication costs and insufficient transformation benefits. This study is committed to advancing the establishment of financial shared service centers and deepening Business-Finance integration.