Financial Reporting Quality、Cash Dividends And Investment Behavior

Cash dividend policy and investment decisions is the two important decisions ofthe company, from the company level, the investment is to increase cash flow of thecompany to create value and main motivation, have important influence on corporatefinancing and dividend policy, from the investor perspective, cash dividend policy isone of the important forms of company returns for investors, especially for just relyon dividends to shareholders is more important for living. But when the companycapital limited company must make whether cash dividend and investment decisions,in perfect capital markets by MM theory is that dividend policy has nothing to do withinvestment decisions, capital market is usually not perfect, however, in the imperfectcapital market, the company received external financing limit due to informationasymmetry, makes some companies had to pay dividends and to give up valuableinvestment projects. Based on the principal-agent theory and information asymmetrytheory, when the ownership and management separation step by step, split betweenmanagement and owners interests, managers will appear for their own interests, theadverse selection and moral hazard problems, which can increase the degree offinancing constraints of the company. While the quality of financial report covers thecompany’s future cash flow of information, the quality of the financial report canrelieve external investors and the information asymmetry of the enterprise, so thisarticle focus with the relations between and among research, trying to provide modernenterprise decision-making information.Based on the above analysis, this paper in2008to2012in deep Shanghai data oflisted companies as the research object. And according to the information disclosureof listed company financial data in CSMAR, data sorting to the financial indexes, andby the state software quality of financial reporting and calculate the residual, willeventually end up with regression data into SPSS19.0.Found in state-owned listed companies, cash dividend inhibitory effect oninvestment is not obvious in non-state enterprises, it has to do with our unique systembackground and business environment. And in order to mitigate the negative effect ofcash dividend and investment, to join the quality of financial reporting, the resultsshow that the high quality of financial reporting can alleviate the inhibitory effect of cash dividend to investment. In addition, the growth as an important variable to groupstudy, found in the growth of the company, the quality of financial reporting foralleviating the inhibitory effect of cash dividend to investment more obvious.