Research on Measurement Company's Cash Flow Risk Using CFaR Model

Based on the concept of Value at Risk, the concept of Cash Flow at Risk is analyzed and the modeling method on CFaR is explained. According to the literatures, the estimating models of company's cash flow risk and risk exposure estimation are set up in the view of policy selection. The cash flow risk of the Chinese listed companies excluding financial companies is researched and evaluated for the first time by making use of CFaR method. The results show that Cash Flow at Risk model is good at the measurement of company's cash flow risk.