The research on the relationship between corporation cash profit and inefficient investment an empirical evidence from Chinas listed manufacturing companies
Cash profit of enterprises can reflect the quality of accounting profit accurately, and decide the magnitude of scheduling space and the support degree that provided by accounting profit for investing activities. However, as the unique characteristics of securities market in China, stateowned large shareholder and the internal control problems still exist in most listed companies, it is considered that managers are more likely to view cash profit as the most direct means of promoting their own interests, leading to either overinvestment or underinvestment, and finally harm shareholders benefit and enterprise value seriously. This paper adopts Chinas Listed Companies 2005-2008 annual data as samples and proves that there is a significantly positive correlation between inefficient investment and cash profit by empirical method. That is, when the cash profit is positive, the enterprise is more likely to overinvestment; when the cash profit is negative, the enterprise is more likely to underinvestment.
cash profit inefficient investment overinvestment underinvestment
Li Tao Zhou Ningning Guo Xiaojing
School of business and management North China Electric Power University Beijing, China
国际会议
成都
英文
287-290
2010-07-09（万方平台首次上网日期，不代表论文的发表时间）