Probe Of The Cash Flow Management Model Based On The Value Creation And Sustainable Development

With the continuous growth and improvement of the market economic system, the degree of marketization of the economy has also been strengthened, so cash flows for the enterprise is increasingly important, and cash flow management is more and more attentions. As the competition in the market becomes more intense, the financial goal of the enterprise turns from the previous maximum profits into the value maximization, at the same time, the cash flow management also put forward higher requirements. Especially in recent years, we can see that many enterprises collapse rapidly after the rapid rise, and the causes and a series of consequences because of financial crisis. As a result, enterprises have to take the cash flow management on the core of financial management.Not only to create value but also to achieve sustainable growth, Only in this way can the enterprise develop for a long time. Now Most of the cash flow management theories still remain on the tactical level of mobility and balance, and many scholars introduce Value Management into a cash flow management but not clearly point out that put both the value creation and sustainable growth into the cash flow management to build a workable management model. This article topic is based on such background conditions, so building the management model based on value creation and sustainable growth in operational cash flow management has a very important theoretical and practical significance.Looking at the value creation, sustainable growth and cash flow management at home and abroad, the individual value creation and sustainable growth has reached a very mature stage. But cash flow management stay at mobility and balance management, and many scholars introduce value creation or sustainable growth into the cash flow management, but not a combination of both as two-dimensional target is introduced into the cash flow management model. Some scholars have proposed to value creation and sustainable growth into the financial strategy, this article uses the idea, and clearly introduces the cash flow management new model.In summary, the paper from the view of the two-dimensional goals and standards of the value creation and sustainable growth, build a new model of cash flow management based on value creation and sustainable growth.The method to study relies mainly on studying in norm study, such as the combing of the management model based on working capital, the management model based on statement of cash flows and basic theory about value creation and sustainable growth. In the writing process focuses on deductive reasoning and logical analysis, suggesting the limitations of the traditional cash flow management, and the challenge of value creation and sustainable growth in the current capital market environment, so cash flow management must be to achieve the two-dimensional target of value creation and sustainable growth. This article also uses the model method, building a new model of cash flow management based on value creation and sustainable growth. In addition, I focus on the combination of theory and practice, using case studies to verify the new model.As a result, the paper is divided into five parts:the first part introduces the research background of this article, significance and the research about value creation, sustainable growth and cash flow management at home and abroad, so enhance cash flow management on the growth of modern enterprises have a profound impact, Also introduces research approach and research methods, as well as the basic framework; the second part introduces the management model based on working capital, the management model based on statement of cash flows and analyses the limitations, illustrating the need for traditional cash flow management needs to be improved; the third part analyses the challenges of the traditional cash flow management, illustrating the adequacy of the constructed theoretical framework of cash flow management based on value creation and sustainable growth, and combs the theory and the connotation of value creation and sustainable growth, and discourses the characteristics of the new model; the fourth part is the core content of this article, and this chapter introduces and chooses the measure index of value creation and sustainable growth, then uses them to build a new model of cash flow management; the fifth part lists two cases about the first quadrant and the second quadrant, and describes the basic conditions and basic financial data, and analyses their cash flow management strategies to verify the management model of the previous chapter.