The Research On Investment-cash Flow Sensitivity Of The Non-ferrous Metals Industry Listed Companies

The non-ferrous metal industry occupies an irreplaceable position in the national economy,it provides an indispensable strategic resource for the development of the country,and it plays an important role in the development of China's economy,national defense construction,progress and stability of the society.And the non-ferrous metal industry plays a big supporting role on many industries,such as energy conservation and environmental protection,machinery and electronics,automobile,high-end equipment,construction,metallurgy and information technology.The development of the non-ferrous metal industry have a lot of obstacles under the double pressure of international economic malaise and domestic economic slowdown.And as a capital-intensive industry,the non-ferrous metal industry have a lot of assets.At present,whether the internal cash flow is adequate and whether the investing and financing policies is reasonable in the case of internal and external problems will directly decide the success and failure of business of enterprises.Considering the above factors and based on the non-ferrous metal industry listed companies as the sample,the article studies the sensitivity relationship between investment expenditure and cash flow,it is of great significance to optimize and improve the investing and financing policies,investment efficiency,and stimulate the market's vitality of China's non-ferrous metal industry listed companies.Firstly,the article illustrates the background,significance,method,content of the research,and builds its own research ideas on the basis of concluding and summarizing the related literatures of investment-cash flow sensitivity at home and abroad.Then,the article introduces the theory and the basic model related to investment-cash flow sensitivity.Secondly,combining with the characteristics of the non-ferrous metal industry in China,the article analyzes the investment and cash flow situation of China's non-ferrous metal industry listed companies.Thirdly,the article selects the relevant research variables,puts forward the thesis hypothesis and establishes the suitable model of the research.Finally,the article select 59 A-share non-ferrous metal industry listed companies ranging from 2010 to 2014 as the analysis object to discuss the dependency relationship between investment expenditure and internal cash flow and its causes of non-ferrous metal industry listed companies,and study the relationship between investment-cash flow sensitivity and enterprises cash reserves.The results show that: the relationship between investment expenditure and internal cash flow of China's non-ferrous metal industry listed companies is sensitive,and the relationship is caused by over-investment based on the free cash flow hypothesis;compared with the non-ferrous metal industry in private listed companies,the state-owned non-ferrous metal industry listed companies have a smaller investment-cash flow sensitivity;the investment-cash flow sensitivity of nonferrous metal industry listed companies increases with cash reserve.According to the results,the article puts forward some related measures and suggestions to perfect the investing and financing policies of China's non-ferrous metal industry listed companies.