An Empirical Study On Investment Cash Flow Sensitivity Of Chinese Manufacturing

With the deepening of China's financial reform and the improvement of the level of global economic integration,the risk and frequency of economic fluctuations are increasing.Facing the increasingly complex environment,how to deal with the relationship between investment and cash flow is of great significance to the development of manufacturing enterprises.This paper uses the panel data of 2002-2015 in China A-share listed companies in manufacturing industry to analysis the relationships between the investment cash flow sensitivity,monetary policy and financing constraints,using the subprime mortgage crisis as the dividing line of monetary policy easing and tightening stages and asset size and asset liability rate as the enterprise financing constraint index.The research results show that China's manufacturing enterprises investment cash flow is the U-shape curve.The easy monetary policy period is U-shape curve,and the tight monetary policy period is the inverse U-shape curve;The low rate of assets and liabilities of enterprises is U-shape curve,and the high rate of assets and liabilities of enterprises is the inverse U-shape curve.The degree of financing constraints and investment cash flow sensitivity is positive correlation.The change in monetary policy affects the corporate investment cash flow,showing as the decline of investment cash flow sensitivity in the easy monetary policy period and the increase of investment cash flow sensitivity in the tight monetary policy period.At the same time,the changes of the investment cash flow sensitivity of the enterprises with different financing constraints are asymmetric,and the impact on the low financing constraints is higher than that of the high financing constraints.This study enriches the empirical research on the the relationships between the monetary policy,financing constraints and investment cash flow sensitivity,and provides a micro foundation for the establishment of the national macro monetary policy and a more comprehensive reference for the enterprise investment and financing decision.