The Impact Of Industry Factors On The Information Content Of The Listed Company’s Cash Flow In China

Since Ball and Brown (1968) starts with the empirical approach to study the usefulness of accountinginformation,all the accounting scholars around this proposition launched a large number of studies, andachieved fruitful results.But most of these studies have focused on the usefulness of accounting earningsinformation, the correlation of accounting earnings and cash flow, A few scholars involved in cash flowinformation content. In recent twenty years, a lot of articles which is about cash flow appear in Our country,that people began to pay more and more attention to the cash flow information. After the2008when thefinancial crisis outbreak, domestic appeared in "cash is king" point of view, whether entrepreneurs andscholars begin to realize the importance of enterprise cash flow.The domestic some scholars have devotedto the study of the information content of cash flow, but due to the different types of production activitiesand business characteristics, different sectors of the company’s cash flow will be different, a lot of cashflow article ignored the industry factor on information content of different industries, the company’s cashflow is generally attributed to a kind of analysis, which affect the accuracy of results.With the capitalmarket in China as the background, using correlation analysis method, this Article through analysis of cashflow and stock returns whether an association exists, based on in-depth analysis of the cash flowinformation content, whether by industry factors.The first chapter of the thesis introduces the background and significance of research, is presented toverify the cash flow information content industry factors can enhance the accuracy of empirical research inaccounting, also can make the external users of accounting information in the analysis of cash flow ofenterprises information, for different industries cash flow difference, objective evaluation of the company’seconomic strength, optimization and decision, in order to save time, guard against and dissolve therisk.The second chapter discusses the empirical tests of the theory: the efficient market hypothesis and thecapital asset pricing model.Efficient market hypothesis and the capital asset pricing model and known asthe empirical accounting of the two basic theories, the relationship between them is: there is no efficientmarket hypothesis, empirical accounting research is become without this wood, without the capital asset pricing model, is unable to the efficient market hypothesis verification.This paper from the accountinginformation and stock price relations, the accrual of defects and cash flow in enterprises of the importanceof3aspects of in-depth analysis of value relevance theory.The third chapter is the cash flow informationcontent empirical test.Empirical test is established on the basis of previous research results, to20062010years in Shanghai and Shenzhen two listed A shares traded companies as the sample, study the real estateindustries four sectors of the cash flow information is the information content between different industries,as well as the cash flow information content is by industry factors.The empirical test is divided into twosteps, first tested in various sectors of the cash flow of enterprises with information content, then the overalltest of different sectors of the cash flow information content is influenced by industry factors.The fourthchapter is the empirical conclusion: Listed Companies in different industries are affected by cash flowinformation content industry factors.The innovation of the article lies in most of the previous studies thecash flow information content based on empirical study joined the industry control variables, in order totest the industry factors on cash flow information content effect.In order to improve the future cash flowaccounting study the precision to make contribution, also make the external users of accountinginformation in the analysis of cash flow of enterprises information, for different industries cash flowdistinction, no uniform standard to carry on the research analysis, can objectively evaluate the economicstrength of the enterprise.