| Enterprise’s financing activities and investment activities are very important operational activities, and reasonable investment and financing decision is very important to the long-term development of the enterprise. With the continuous development of economy in our country, the investment-cash flow sensitivity has gradually become a hot investment theory. At present, the academic mainly focus on the existence and the dominant factors of investment cash flow sensitivity from the economic point of view and the corporate financial point of view, but most of the research ignore the important role of senior managers who makes the investment decision and control the corporate resources. The cognitive level and values of top management team influence the decision-making behavior, which has crucial effect to the investment and financing behavior. Based on the upper echelons, from the perspective of the top management team, we study the investment cash flow sensitivity and draw up the relation between them, to broaden the theory of investment cash flow sensitivity, and give some policy suggestions for the corporate investment and financing behavior and executives of the appointment.Based on the detailed analysis of relevant research literature, the paper defined the the investment cash flow sensitivity and executive characteristics, and analysis the theoretical relationship between the two, then puts forward the hypothesis of empirical research. Choosing the data of real estate companies from 2007 to 2013 as the research samples, we empirical test the affection from the characteristics of top management team on investment cash flow sensitivity in real estate listed company. In the study, we adopt the methods of literature research and empirical research, combining qualitative research and quantitative research. The empirical part mainly uses the statistical analysis method such as descriptive analysis, correlation analysis and multivariate statistical analysis methods. The main research contents and conclusions are as follows:1. In China’s real estate industry, the mean of the internal cash flow is lower than the investment spending, and faced with good investment opportunities. There is investment cash flow sensitivity in the real estate industry in our country, and the investment and internal cash flow has a significant positive correlation, that is to say the investment behavior of the real estate company changes along with the internal cash flow fluctuation.2. After verifying the existence of investment cash flow sensitivity, this paper choose five background characteristics of the top management team like sex ratio, average age, average education level, professional background and the average tenure, and structures the model to study how executives characteristics affect investment cash flow sensitivity in real estate company. Regression analysis showed that the ratio of males among top management team is much higher than the proportion of women, and the ratio of males has significantly negative correlation with the corporate investment cash flow sensitivity; the average age of the TMT has significantly negative correlation with the investment cash flow sensitivity, and consistent with other industries; the TMT’s average educational level is higher, and has significantly negative correlation with the investment cash flow sensitivity; the ratio of the TMT who has economics and management professional background has significantly negative correlation with the investment cash flow sensitivity too; the average tenure of TMT is relatively short, and also has significantly negative correlation with the investment cash flow sensitivity.3.Finally, based on the empirical research conclusions and the relationship between the characteristics of senior managers and investment cash flow sensitivity, we put forward policy suggestions to investment and financing decision-making and executives team’s appointment, and summarizes the problems of this research and development prospects. |
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