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Research of the Mutual Transformation’s Influence Factors between Value Creation and Risk in Enterprise Cash Flow Operation

Author: ZhangWenZhong
Tutor: ChenZhiBin
School: Nanjing University
Course: Accounting
Keywords: Cash Flow Value Creation Risks have emerged Change Influencing factors
CLC: F275
Type: Master's thesis
Year: 2011
Downloads: 169
Quote: 0
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Abstract


Cash flow is a key driver of corporate value creation, corporate cash flow management goal is to create value for the enterprise (Chen Zhibin, 2002). However, the contradiction between the two sides of principle tells us: cash flow in the operation of not only value creation, its opposite side - the risk appeared. Practice, corporate cash flow while creating value also bear the potential cash flow to run the risk, the value of the cash flow running to create and risk appeared like a pair of twin brothers are inseparable. Moreover, the status of the cash flows of these two effects in certain contexts, or in the role of certain factors, often shifts. After the outbreak of the financial crisis in the United States, many companies fall into the plight of cash flow drying up, has used cash flow to create value and demonstrates to the world to show each other the fact that changes in cash flow run value creation and risk. This study was to investigate the operation of corporate cash flow value creation and risk influencing factors show mutual transformation. In order to achieve the purpose of research, based on full review relevant research data, starting with the theoretical level value creation and risk appearing mutual changes in the cash flow operation, and the design of the analytical framework. Then, using a multi-case study method, the practice of collecting operation experienced cash flow value creation and risk show mutual transformation of China's business case, and then detail these cases data collation, analysis, review and summarize the practice constraints this transformation influencing factors discovered. Finally, these factors categories were elaborated. Through the classification process of influencing factors, the study found that they are a collection of internal factors and external factors. Concentrated in the enterprise management level, internal factors and external factors are concentrated at the market level and the government level. In this paper, from the three levels to illustrate the impact of this shift factors. Among them, the enterprise management level is internal and dominant; market level and the government level is external. Analyze and identify the influencing factors of all levels one by one, we find that the level of business management factors mainly related to business financing model, marketing model, business model, technical defects and innovation, product quality, cost, expense management, internal control, asset eleven aspect of the restructuring, industrial restructuring and industrial upgrading, business investment, mergers and acquisitions: specialization or diversification; market level factors involved together with the bulk of the cost of production fluctuations, partners, market rumors, the capital market signals and market regulators such as the five category; government level factors related to national macro-control, government financial support, national policy three categories.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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