Innovative Research On The Short-term Investments Of Medium And Small Enterprises’ Idle Funds

The efficiency of the resources distribution is the eternal theme of economics andcorporate finance theory. For a long time, low rate of return which is cause bymedium and small enterprises’ poor skills in managing their idle fund, leads to theblind investment impulse. Meanwhile, the defect of our country’s finance marketsabout law environment and supervisory system brings a lot of difficulty whenmedium and small enterprises invest their idle fund. Because all kinds of short-terminvestment products in the market are numerous and complicated, ordinary small andmedium-sized enterprises doesn’t have enough resource and capability to make theselective purchasing. Because many excellent investment products require thresholdfor investment sum and duration, the small and medium-sized enterprises can’t investon them.This paper mainly research on the character of small and medium-sized enterprises’idle fund and investment tools they can use, innovatively design a model for smalland medium-sized enterprises to make short-term investments of their idle fund. Thepaper introduce major theories of small and medium-sized enterprises financing andshort-term investments, state present situation and problem about small andmedium-sized enterprises’ idle fund, and the necessity to enhance the administrationof small and medium-sized enterprises’ idle fund. Then the paper comparativeanalysis the investment tools that can be utilized by small and medium-sizedenterprises, crosswise compare the data of these short-term investment tools’ rate ofreturn and so on, conclude the common features of excellence investments productsand the scope of application for these short-term investment tools. Finally the paperinnovatively design an aggregative model for small and medium-sized enterprises toinvest their idle fund, state its theory/organization structure/investment process/profit model/principle to choose investment tools/aggregative fund pool controlmechanism, analysis its advantages and disadvantages, measure its optimizationefficiency by example of case. Through research, we could get these conclusions: firstly, there are many problemsof small and medium-sized enterprises’ idle fund management, the capability ofcorporation finance urgently needs to be enhanced; Secondly, the investment productsissued by institution like banks and fund companies are becoming more and morecomplicated. Small and medium-sized enterprises must have comprehensive investskills and system to achieve reasonable profit while controlling risks and meet theneeds of circulating fund. Thirdly, this paper design an aggregative model for smalland medium-sized enterprises to invest their idle fund by optimizing the fundmanagement and investment skills, proves its practicability and value. It is acommendable attempt to serve small and medium-sized enterprises on fundmanagement and capital appreciation by the advantage of this model.