Research on the Influence of Financial Slack on Investment --- Based on Empirical Analysis of China’s A-Share Listed Company in Manufacturing Industry

Abstract

This paper studies, taking China’s A-share listed company in manufacturing industry as the object, how the investment is influenced by the financial slack and whether the influence is adjusted by the investment risk of new project. The conclusions are as follow: (1) The China’s A-share listed companies in manufacturing industry’ financial slack has a positive impact on the companies’ future investment. (2) Under the high-risk investment of project, financial slack has a positive effect on the companies’ future investment.