Notice of Retraction The research on the relationship between corporation cash profit and inefficient investment

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, state-owned 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 China's 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.