Study On The Relationship Of Free Cash Flow And Investment Of The Listed Companys On The Basis Of Financing Constraints

In the market economy of our country, the information dissymmetry and act for the cost problem are very widespread phenomenon.They may cause company to prefer to choose inside cash. Therefore, the free cash flow will influence the investment decision of the company.Notice invest is to insure the material foundation that can keep on development and raise its competition ability. The investment decision of science reasonable directly influence the free cash flow. In the importance analysis of the company finance activity,the investment is the most important finance decision.The paper studys theoretically and empirically the relationship between the free cash flow and investment under financing constraints.On the baisis of review and comment of the investment theory, analyze the mechanism of financing constraints, discussed macroscopical and microcosmic factor that influence the financing constraints.Because of the importance of the free cash flow,the paper elaborated the calculation method of the free cash flow.Through a contrast result in the difference of compute the free cash flow because of China and America two national legislatures account the standard dissimilarity,put forward concrete accountancy's method that computes the free cash flow.Pass the research,author detection:at the economic period of turn track,in our capital market existing the serious information dissymmetry,make the company exist the bigger exterior financing constraints,the investor has stronger hobby to thefinancing sequence.