Research On The Impact Of Quasi-financial Models On Financial Elasticit

Along with the annulment of the policies to stimulate consumption,for example "house electric appliances go to the countryside" and "old exchange the new",the development of the home appliance industry seems to have reached a bottleneck period and slowed down.With the rapid development of urbanization in the country,many rural residents have rushed to the city for development,which has brought about a surge in urban population and promoted the sales of commercial housing.The supporting household appliance industry has also enjoyed this dividend.However,Since 2020,the consequences of COVID-19,the lack of raw materials and the incapability to guarantee supply have caused a surge in the demand for household appliances,and the people’s purchasing power and eagerness have declined,resulting in a sluggish growth of the domestic economy and a pessimistic outlook for the future of the household appliance market.Rapid and vigorous economic growth has caused intensifying market rivalry.The rise of material,labor,transportation and other costs will more seriously compress the profit space of enterprises.Because many companies can’t make ends meet,there are huge difficulties in the management of internal capital flow,and even the most basic needs of enterprise capital operation can not be guaranteed.Finally,the end of bankruptcy occurred.In such a bad situation,the company began to realize that it was better to take the initiative to seek survival opportunities than to wait for the country to issue the assistance policy.The household appliance enterprises also began to accelerate the transformation,began to pay more attention to internal control,and actively explore new business strategies to meet the difficulties.At this time,such financial models stood out to help the company strengthen its ability to resist risks in the production and operation process,but did not bring a large amount of funds to the enterprise,Increase financial flexibility.Based on the quasi-financial model,the study which studies the quasi-financial model will affect the financial flexibility with whatever way.In the first place,on the basis of theoretical analysis,the influence of quasi-financial model on the source of financial flexibility is demonstrated.After that,take Haier Smart Home as the case object to study the way and effect of indirect Haier Smart Home’s application of quasi-financial model.Then,it analyzes the impact of the three types of financial models of Haier Smart Home on the financial flexibility,and measures the financial flexibility under the Haier Smart Home financial model.The financial model’s backing of Haier Smart Home’s financial flexibility has yielded positive outcomes,yet there is still reliance on suppliers,leading to issues such as high inventory and payment pressures.This is based on the cash,external financing,and leverage standards of financial flexibility.Therefore,there is also a ceiling in the operation of the quasi-financial model,and enterprises cannot rely too much on this model.In light of the difficulties Haier Smart Home has faced in utilizing the quasi-financial model and managing financial flexibility,some proposals have been proposed.Since2012,with the“Home appliances to the countryside” and“Old for new” and other national incentive policies canceled,tthe home appliance industry’s growth has slowed,resulting in a downturn.By 2015,as the country urbanizes,a large number of migrant workers will move to cities,pushing up real estate transactions and boosting sales in the home appliance industry.But since 2020,with the global spread of the epidemic,the scarcity of imported materials and the lag in supply have made the production costs of household appliances rise,and the drop in residents’ spending power and desire has caused economic development to slow down,the future of home appliance market is worrying.The ups and downs of the development of the market competition environment,materials,labor and logistics costs continue to squeeze the enterprise’s profit space.Many enterprises can not make ends meet,cash flow has serious problems,can not guarantee the basic daily operation of capital needs,facing bankruptcy outcome,in this context,enterprises realize that it is better to wait passively for the state dividend policy than to take the initiative to attack,household appliance enterprises have accelerated the transformation,began to pay attention to internal management,constantly seeking new business strategies to meet the challenges,the quasi-financial model,by virtue of the new financing idea to change the source of funds and channels,stands out by making full use of the advantages of the enterprise itself to absorb external resources,so that the enterprise has more sufficient liquid assets,to diminish the peril that the business may confront in the future or to ensure the capacity to satisfy the forthcoming cash requirement at a low cost,and to advance financial suppleness.This paper examines the influence of the quasi-financial model on the financial elasticity of enterprises.To begin,theoretical analysis reveals the effect of the quasi-financial model on the sources of financial elasticity.After that,take the Haier family as the case object,the indirect Haier family uses the similar finance pattern way as well as the application effect how.Then,the paper analyzes the impact of the three types of financial models used by Haier family on the financial elasticity,and measures the financial elasticity under the Haier family financial model,by calculating the three indexes of financial elasticity,namely Cash Index,external financing index and leverage index,it is concluded that under the operation of quasi-financial model,the financial elasticity of haier-zhijia has achieved better results,but there are also problems such as dependence on suppliers,inventory pressure and financial risk.So the operation of quasi-financial model is also a ceiling,enterprises can not be too dependent on the formation of the model.Finally,some suggestions are put forward for the problems in the application of quasi-financial model and the management of financial flexibility.