The results show that:(1) the degree of the financing constraints can not be mirrored by the investment-cash flow sensitivity in the listed firms,which disagrees with the opinions from some Chinese researchers in this field;(2) the sensitivity is positively correlated with the profit earning power but negatively with the repaying debt .

The relation between firm financing constraints and investment-cash flow sensitivity has been the topic of an important debate in recent years, and financing constraint refers to the situation where investment is affected by the size of internal funds, because of the wedge between the costs of internal and external funds.

In this paper, the research results with regard to the existence and the originations of the investment cash flow sensitivity were reviewed basing on financing constraint theory of the asymmetric information and the agency costs hypothesis of the free cash flow.