Research On Internal Cash Flow And Investment Efficien Of Listed Companies

Investment decision in the three financial decisions in core position, because investment decisions not only in a large extent determines the company’s financing behavior and the amount of and investment income has a direct impact on the company’s dividend payment behavior. On the investment behavior of enterprises, domestic and foreign scholars made a lot of discussion, finds the results of the study, the majority of enterprises exist the inefficient investment behavior, and cash flow as the enterprise of blood flow, the investment behavior of enterprises has a significant impact. The enterprise internal cash flow amount will enable enterprises to lead to overinvestment or underinvestment phenomenon, this non efficiency investment will seriously damage the corporate investors interests, but also affect the development of the market economy of our country. Therefore, it is very necessary to study the efficiency of enterprise investment, and it is necessary to study the practical measures to improve the efficiency of enterprise investment.Based on the data of Shanghai and Shenzhen A shares in Shanghai and Shenzhen Stock 2010-2014, we use Richardson(2006) investment efficiency model, and adopt the combination of normative and empirical analysis, from the perspective of enterprise property rights, through observing the relationship between the internal cash flow and investment behavior of the listing Corporation. Firstly, the classical investment theory and the free cash flow hypothesis are analyzed and reviewed. In the analysis and summary of the domestic and foreign related literature on the investment efficiency, the hypothesis of the relationship between the property right, internal cash flow and investment efficiency of enterprises is put forward. Secondly, to construct a reasonable investment efficiency model, using multiple regression analysis method to analyze the relationship between the property right, internal cash flow and investment efficiency of the three. Finally, according to the empirical test results, we put forward the relevant suggestions to improve the investment efficiency of the listing Corporation of our country.Through empirical analysis, we find that the free cash flow of the enterprises is related to the over investment of the enterprises, which is the more abundant the cash flow in the enterprise, the more easily lead to excessive investment; The shortage of cash flow in the enterprise is significantly related to the investment, that is, the shortage of cash flow in the enterprise is more likely to lead to investment; With respect to the non state-owned enterprises, the state-owned enterprises have increased the excessive investment, which is caused by the surplus of the internal cash flow, that is, the phenomenon of excessive investment in the state-owned enterprises is more prone to excess investment; Compared with state-owned enterprises, the non state owned enterprises are more likely to invest less in the case of internal cash flow shortage.The innovation of this paper lies in the unique perspective. There are a lot of investment in the literature about the enterprise investment efficiency, and the study of internal cash flow and investment efficiency of the literatures of corporate investment cash flow sensitivity, and dividend policy with the two relations to influence corporate cash flow sensitivity, and the enterprise internal control effect on corporate investment efficiency. This paper from the angle of the property right of analysis of different property rights impact on internal cash flow, thus affecting enterprise investment scale and investment efficiency.