Private Manufacturing Listed Companies Cash Flow And Corporate Performance Correlation Theory And Empirical Analysis

Cash as part of the most liquid corporate assets, has always been the basis andprerequisite for the smooth functioning of the protection business. This article by combingthe literature, understand the current development of domestic and foreign enterprisesperformance evaluation, financial analysis indicators of progress, as well as corporate cashflow in the evaluation and financial analysis of business performance in the application.Thus summarize and elaborate on the cash flow and corporate performance theory.Through the analysis of cash flow and business performance, combined with theoreticalknowledge of the current enterprise performance evaluation system profitability, solvency,operational capacity and long-term development of the ability of four built16based oncash flows of the enterprise performance evaluation. Using factor analysis on an empiricalanalysis of these evaluation index system with the original cash flow compared to threeconclusions:Empirical analysis of the results on the improved cash flow, corporate performanceevaluation index system is basically as expected with the establishment of the theory ofindicators. The three evaluation to improve the evaluation capacity of the indicator systemare better than the original cash flow evaluation index system, Although the solvency ofthe superiority of the evaluation index system is not very obvious, but its prediction is quiteimpressive.Build more appropriate evaluation of the profitability. Solvency indicators, improvedcash flow solvency evaluation index system given year score correlation coefficient ismuch higher than the original score of the index system coefficient. Some even order ofmagnitude difference in the predictive ability of the index system converted more. Despitethe development capacity building is not the same as the first two significant results, andshowing a gradual upward trend of evaluation capacity.In every respect, the empirical analysis of the results confirmed the reliability of cashflow information is continuing to strengthen evaluation capacity has gradually increased.Therefore we can say the development and use of cash flow information is worthy of ourattention. Cash flow information-based corporate finance analysis index system morerational and effective than the traditional index system, has more practical value. Thefuture direction of development of corporate is financial analysis and evaluation indexsystem. There are still many shortcomings to be improved.