Abstract: The relationship between the effect of derivatives and firm value has been one of the issues of common concern for the academics and practitioners. Although research literature has been rich, but did not form the same conclusions. In this paper, the regulatory effect of cash flow for the study of perspective, the regression model of empirical studies have found that businesses can use derivatives to reduce cash flow volatility, and enhance cash flow stability, and thus enhance the company's value and performance. And non-state-owned enterprises than the state-owned enterprises have better use of results because of its less intervention and regulation.