The Study On Cash Flow Signaling Of Listed Company

After the baptism of the global financial crisis, listed companies are facing the new development opportunity. The listed company is an important subject in the modern market economy, involving a large number of stakeholders, including shareholders, creditors, management, potential investors, and regulators. A large number of listed companies' financial information is required when these stakeholders make decisions. However, as many accounting fraud events are exposed, people begin to doubt the information based on accrual basis of accounting,which are thought to reflect the company's operations and financial condition.Cash flow information can't be easily influenced by artificial manipulation, and truly reflect the listed company's operation and financial condition. It can overcome the accrual basis of accounting information's deficiency. Although cash flow information has these advantages, cash flow information in financial analysis is always in the secondary added status. At present, the listed company cash flow analysis has some shortages, which mainly display in: first, cash flow analysis does not pay attention to the quality of itself; second, cash flow changing analysis was neglected; third, cash flow analysis lack of comprehensive and comparative analysis. Cash flow plays an important role in the signal delivering, but it was limited by several restrictions. Cash flow information is limited and its disclosure is not timely. Information in cash flow signal is not easy to be understood. The listed company doesn't have enough motives in transferring cash flow signal.In this paper, I did an empirical analysis about the listed company cash flow signaling transfer, which based on an in-depth study of the signal theory and cash-flow analysis. In empirical analysis part, net assets yield rate, sustainable development rate and z score are dependent variables; operating activities cash inflow per share, operating activities cash outflow per share, investment activities cash inflow per share, investment activities cash outflow per share, financing activities cash inflow per share and financing activities cash outflow per share are independent variables; the listed company scale is control variable. Combining the analysis of cash flow sample companies, I tested the proposed three hypotheses through multiple regression analysis. Cash flow is the listed company's blood, which is a kind of objective signal. This signal gives us the information about the listed company's earnings quality, development capacity, and financial risks. Finally, I put forward three suggestions according to restrictions of cash flow signaling. First, the supervision department should perfect the cash flow information disclosure system. Second, listed companies should provide complete and accurate information of cash flow. Third, information user should fully excavate the information in cash flow signal.