The Research On Over-investment Behavior Based On Free Cash Flow Of Listed Companies

After meeting all positive net present value projects, surplus cash flow should be paid to shareholders through various ways. Because of separation of ownership and management, the interests of managers are inconsistent with corporation. Managers out of the motivation of management opportunism, invest to projects that are beneficial to management and against corporation using free cash flow. That form over-investment. The more free cash flow, the bigger over-investment will be.This dissertation based on free cash flow, summarizing and absorbing the foreign relevant achievement in research field, combining with the reality of the listed company of our country, study the over-investment behavior. Trying from main control person, analyzes the effects of them to over-investment. Find theoretical basis to preventing and reducing over-investment behavior and put forward countermeasures.The dissertation is organized as follows. At first, this dissertation reviews free cash flow theory to establish the theoretical basis for analysis of over-investment. Then utilization principal-agent theory, opportunism management theory and control rights theory analysis the motivation of over-investment. This dissertation also according to the researches on over-investment by scholar home and abroad based on further analysis and comprehensive measurement of free cash flow and growth opportunity, by model building of appropriate investment get the level of over-investment. Study on the present situation from total samples and partial industry sample. Later, this dissertation tests the influence factors of over-investment of Chinese listed companies by means of empirical study from main control person shareholders, board of directors, board of supervisors and creditors four aspects through building the model of the effect of them to over-investment.Last according to the research results and economic policy put forward some suggestions to over-investment.