Free Cash Flow To Hold Value Research

With the rapid development of market economy, the listed company ownership of free cash flow value problem has increasingly become the focus of academic circles. In recent years, the agency costs, excessive investment, defense, on-the-job consumption and inefficient m&a management is more and more frequent, the phenomena of serious restricted the healthy development of the enterprise, which is closely related with the holdings of free cash flow. Therefore, how to adjust according to the need of the development of the enterprise business hold free cash flow level, realize the maximization of the hold value increase become urgent and realistic task.Firstly, based on the review of relevant literature at home and abroad, respectively in different financing constraints, the enterprise growth and management level of the holdings, the relationship between free cash flow and its holding value. The specification part of free cash flow, financing constraints, the enterprise growth, the level of management equity literature achievements at home and abroad carding analysis, induction and collation, and gives a brief review. At the same time introduces the related theory, based on the related literature review, which leads to the corresponding assumptions, design provides a theoretical basis for empirical research.In empirical research part, based on the Shanghai and shenzhen two city2009-2013, the data of listed companies as research samples, the main reference Faulkender&Wang (2006) measured by holding the value of the cash flow model, combined with Hansen (1999) threshold regression method, on the basis of balance panel data threshold regression model is established. In this paper for the selected sample data of descriptive test and correlation test; Then, on the threshold of the different variables under the threshold regression analysis. By the results of the empirical regression analysis, based on the analysis to the following conclusions:(1) free cash flow and free cash flow to hold value was positively related to relationship, reasonable free cash flow beneficial to increase the value of free cash flow to hold;(2) the financing constraints, free cash flow and free cash flow to hold values were positively correlated relationship, reasonable financing constraints, beneficial to increase the value of free cash flow to hold;(3) enterprise growth, the value of free cash flow and free cash flow to hold positively correlated relationship, enterprise in the growth in the middle level is beneficial to increase the value of free cash flow to hold;(4) management ownership, the value of free cash flow and free cash flow to hold positively correlated relationship, appropriate management equity beneficial to increase the value of free cash flow to hold. Based on the above conclusion, and puts forward relevant countermeasures and Suggestions.