Research On The Sensitivity Between Investment Expenditure And Internal Cash Flow Of IT Listed Companies

Financing constraint and agency cost which can explain that finance internally influences investing activities have become the focus researched in recent years.The paper makes internal cash flow as the embodiment of internal financing ability.Base on theoretical analysis, the paper investigates the influence of internal cash flow fluctuation on the change of investment expenditure and the reason for the influence,with the IT listed companies from 2003-2007 as the sample and the size,financial position,control right characters,industry characteristic as the classification standard.Here are some conclusions from the research:IT listed companies investing expenditure is sensitive to internal cash with direct proportion. Sensitivity lowers with the expansion of the companies,and descends from bad financial, good financial to general financial position.It is higher in state-owed companies than in private enterprises and lowers in all-around companies,applied-service companies, manufacturing companies and conceptual companies.The dynamic analysis show that some companies which are ranged big size,general financial position,private enterprises, all-around companies or conceptual companies are based on financing constraint hypothesize, other sorts are based on agency cost hypothesize.