Empirical Research On The Manipulation Of The Cash Flow

Cash flow is a very important factor which decide enterprise value. People generally thought, compared with the accounting earnings, net cash flow is more likely to close the enterprise economic profit in economics. It is less use of accounting personnel's estimate and judgment, so it should be more realistic, also more reliable. Because of the characteristics of cash flow and observation, we are more dependent on the cash flow of information in the real practice. Just in the research of earnings management, it also often appear in cash flow as the benchmark assessment and reference. People usually think, cash flow is difficult to be manipulated.But, out of the expectations of people, most attention by outside information users surface that cash flow can be manipulated through some means. The report for improving accounting information user, misleading. From the domestic and foreign research conclusion which we found, the company's cash flow may be like the accounting earnings, under the control and utilization in the management of the company, to mislead the investor of the company's performance evaluation. Besides,in the reality of our company's cash flow of individual situation of study we found, the reliability of the cash flow is questionable. Since the cash flow has been largely by manipulation, so how to manipulate the consequences, how to reflect the impact to the company, especially the impact on corporate value? With this question, based on the data of chinese listed companies experience, results from home and abroad to mature, develop empirical research on the relationship between the manipulation of China's cash flow and the corporate value.First, this paper mainly reviews the research results, and the related concepts involved and cash flow control, the consequences of theory, etc.Secondly, Using three year 2007-2009panel data, with China a-share listed companies as the sample, using manufacturing industry as the research sample, using the method of earnings management and distribution of the listed companies in China to the cash flow control for existence. The research shows that, in manufacturing as a representative of the listed companies in China have cash flow control,previous research conclusion can do for each other.Again, using the regression results of Article 1 the model, to hand of cash flow, on the basis of that, choose a few more representative variables as hypothesis variables.In the regression model based on the setting of empirical research, empirical stage of descriptive statistics, correlation and regression analysis, and linear Suggestions. Empirical study results, executives shares and cash flow control,executive compensation and cash flow control, the size of the board and cash flow control, Enterprise's development and cash flow control, enterprise's profit and cash flow control, Regression model is effective, the paper basic assumptions are verified.Finally, based on the empirical studies we put forward on the basis of strengthening the control of cash flow manipulation, in order to better serve for China's economic development.