Comparative Research Optimum Cash Balance Management Model

Enterprise Group To achieve long-term stable development, we must focus on themanagement of cash balances, cash balances to adjust management strategies to makecash within the enterprise group to form a virtuous circle. Enterprise Group to managecash balances given a high priority, since the cash mastery within the enterprise, variousactivities with the use of cash conglomerates are closely linked. Meanwhile, cashliquidity has also requires companies must strengthen the management of the Group ’scash balances, and thus to implement effective control measures for the Group’s cashbalances enterprise, the enterprise internal stability and orderly operation. Cash onlysupport enterprise groups in order to carry out normal production and business activities.Corporate cash flow is actually raising cash, investments, distribution, and then raise,reinvestment cycle redistribution. Best Cash Balance Management Group as a keyenterprise management and control of the enterprise group is an irreplaceable importantrole. According to the existing practices, insufficient cash balances Enterprise Group,has become the essence of cash shortages, thereby enabling the normal operation of theGroup’s business has been greatly affected. Conversely, if the excess cash balances, willresult in a waste of resources. Therefore, in determining the optimal cash balance, themeasure must be weighed against the risks and rewards of less inadequate, too far,therefore, as a business group, if you want to play the best role in the cash necessary toestablish a scientific and rational management system optimal cash balance.Enterprise Group to establish an appropriate balance of the best cash managementsystem must have four functions: First, the enterprise business group headquarterssubordinate control performed live, the right to judge competitive strategy, and in theassessment of subordinate enterprises have a real and reliable basis; two is to enable theGroup headquarters to grasp the circumstances of corporate cash applications, inviolation of laws and regulations, there is a high risk and harm the interests of theenterprise can effectively prevent acts; Third, to make the whole enterprise group wereable to cash deployment, master financing first-hand information, reduce financing costsand improve cash utilization; fourth is able to make a large-scale enterprise group,professional financial management system, improve investment efficiency, reducefinancing costs, avoid financial risks. Based on the review of the relevant literature andcombing, optimal cash balance of the Group’s research enterprise management model based on the cash balance for the domestic group enterprise management problems andsuccessful management of multinational corporate cash balances, compared with China’sstage conglomerates cash environment, introduced for Chinese conglomerate best cashbalance management. The second chapter of the theoretical basis of the best EnterpriseGroup cash balance management mode are described, the third chapter analyzes thedomestic and multinational Group cash balance management best macroeconomicenvironment and developments, the fourth chapter to chapter six papers subject,discusses the domestic conglomerates and multinational conglomerates best managementmodel and the significance presented in this paper discusses the core elements: the cashbalance in terms of the management system, through research and comparison ofdomestic and multinational group between, describes the management of cash balanceswithin the corporate group ’s important role. Chapter VI A group of domestic andmultinational corporate cash management model enterprise group B cash balancemanagement model comparative study, in our current cash management environment,the introduction of a new model best suited to China’s Enterprise Group cash balancemanagement.Finally, this paper summarizes the research findings and inspiration, trying to builda suitable law of development of Chinese enterprises and the best use of the cashbalances of cash management, optimal cash balance management mechanism of theformation of the management model in our enterprise groups, while the dominant modeimplementation of recommendations, which explore with Chinese characteristicsenterprise management model to achieve optimal cash balance management to maximizeefficiency, provide a useful reference.