The Research On The Possibility Of Enterprise's Financial Cycle Existing

Business cycle is national and regional macroeconomic development cycle fluctuations.We always use economic growth,inflation,income,consumption and savings levels,the amount of currency and foreign exchange reserves and other economic indicators to measure it.The research of the economic cycle is already very sophisticated.However,as an important component of macroeconomic business cycle, but microeconomic literature has found significant.Enterprise's financial cycle by the enterprises' themselves inherent factors of production cycle is determined by the objective laws of the various elements of the capital,including financial capital,physical capital,knowledge capital,technology, capital,information capital and so on.Such capital exists the turn of their working process.At present,many enterprises do not fully understand their important business impact of the financial cycle,and fell into a financial distress.Some companies recognize the implementation of a reasonable financial strategy on the basis of the financial cycle fluctuations,and won the initiative.The main purpose of this article are to use of empirical data to draw the results of the exist of the financial cycle,which nature financial indicators of the cyclical has, what is it's features.And using a variety of financial index analyses the financial cycle and identifying the impact of corporate finance relevant factors.And explain the theory of financial cycle.Finally,from the expansion phase of the economic cycle as well as the tightening phase,we provide policy recommendations for enterprises to better adapt to the economic cycle to avoid financial difficulties.The basic ideas and content of this paper:PartⅠ:focuses on the background of the thesis research and the causes of writing. From the main biological characteristics of the enterprise,the enlightening of economic cycle,as well as Chinese enterprises affected by the reality of the financial cycle,we research purposes of this article,as well as the background.PartⅡ:the corporate existence of the financial cycle,influencing factors of the financial cycle of the research,we make a literature review including the study of domestic as well as foreign scholars.The main factor of the impact of the financial cycle includes the economic cycle and life-cycle theory.PartⅢ:Study on the relevant assumptions and research methods.Review of the literature,the author mainly through corporate financial leverage,return on equity, and inventory turnover and cash holdings of the four aspects of the financial situation of enterprises studied cyclical fluctuations.Through a variety of relevant theories of inference,we target the financial situation of the four cyclical assumptions.The main use of econometric methods to empirical testing,because of this article relates to multiple cross-section time-series data,so the use of panel data modeling methods and treatment methods.At the same time based on select a sample covering a wide range of data and data time-span of major principle,we select data.PartⅣ:description of the data and establish three related econometric model.Set of assumptions for authentication,the results show that the financial situation of Chinese enterprises do exist to cyclical fluctuations,financial leverage,return on equity cycle has obvious pro-cycle,and corporate cash holdings have a significant inverse cyclical,inventory turnover rate did not find significant cyclical.The discovery of the cyclical nature,we use econometric model of factors related to its certification,an attempt to discover the impact of cyclical fluctuations in the financial factor.We found that many macroeconomic factors have a significant impact on the financial situation of enterprises.PartⅤ:A summary of research results.The essential purpose of cycle of corporate finance research is the financial strategy of providing policy recommendations for the financial strategy,to avoid fluctuations of corporate finance to enable enterprises to maintain stable development.After studying the business cycles,we propose the financial strategy at different stages.Because of enterprises can't control external factors,the recommendations are provided by the enterprises themselves as the starting point.The main stage is divided into economic recession corporate financial strategy and corporate financial strategy at expansion stage.The innovation of this article:the use of empirical methods of the existence of the financial cycle is studied.Some indicators of financial situation are pre-economic cycle,such as return on equity,cash holdings,and some cont-cycle indicators,such as financial leverage.