The Empirical Research Of The Business Investment-cash Flow Sensitivity On The Background Of Financial Crisis

A global financial crisis in 2007 has brought the world economy different negative influence, it was a severe blow whether to the physical or capital markets.Business investment is an important basis for capital accumulation, the internal cash flow on corpotate investment payment has a strong sensitivity. In the context of financial crisis, financing environmental degrades, raw materials and energy prices and other factors affect the business funds operation, which out of question would influnce the enterprises’investment.In this paper, based on the learning and absorbing foreign and internal enterprises investment and internal cash flow’s research results, combing our country’s unique capital market, selecting the financial data of listed companies in China ranging from 2006-2007 and 2008-2009. According to the substantial control, the real sample are divided into state-controlled listed companies and non state-controlled listed companies, by means of empirical research the paper would reveal the relationship between the two sides, and compare the sensitivity variation of the two periods. Meanwhile the state-controlled listed companies are further divided into the central holding state-owned companies and local state-owned companies. First of all, it has a descriptive statistics of the overall sample and sub-sample, followed by it has a regression analysis, finally through the empirical analysis it gets that our country’s listed companies manifest different degrees of investment-cash flow sensitivity before and after the financial crisis,different ownership companies demonstrated the distinct features.The articla gives a series of recommendations about how to response the operating conditions in the post-crisis era.Therefore, different property enterprises have different performance in the context of financial crisis, the paper gives appropriate countermeasures on cash flow and investment management, while encouraging the government to pay more attention to the private holding companies to help them go out of shadows of the financial crisis. This study is part of research results which belongs to“post-crisis-era business cash flow sensitivity”of“central universities basic research expenses subject”,and provides basis analysis and data support for subsequent research.