Font Size: a A A

Research On The Investment Efficiency Of China's Small And Medium Sized Listing Corporation Based On Free Cash Flow

Posted on:2017-02-17Degree:MasterType:Thesis
Country:ChinaCandidate:D Y ZhenFull Text:PDF
GTID:2349330485957260Subject:Accounting
Abstract/Summary:PDF Full Text Request
As an indispensable part of the socialist market economy, the small and medium-sized enterprises have a very important role in the economic development of our country. However, due to various reasons, there is a certain gap between the investment efficiency of SME board and the main board companies. Inefficient investment behavior restricts the development of small and medium-sized enterprises. Non efficiency investment mainly has two kinds of forms of undercapitalize and excessive investment, while the phenomenon of undercapitalize in small and medium-sized board listing Corporation is more common.This paper studies the factors that influence the investment efficiency of small and medium-sized board listing Corporation from several aspects. By reviewing the relevant literature review in recent years, and the relevant theories such as the Free Cash Flow hypothesis, Agency cost theory, such as the theory of Financing constraints to sort out, found that Free Cash Flow, Agency costs and Financing constraints on corporate investment efficiency has a significant impact. In view of this, based on the characteristics of small and medium enterprises, this paper proposes four hypotheses to test the relationship between Free Cash Flow, Agency costs, Financing constraints and corporate investment. And selected 530 small and medium board listing Corporation 1590 sample data from 2012 to 2014 to analysis Free Cash Flow, Agency cost and Financial constraints on corporate investment efficiency mechanism by using Richardson(2006) investment expectation model. The sample data were classified by EXCEL, and the regression analysis and correlation test were carried out by using SPSS software. The results show that, China's SME board listed company insufficient investment phenomenon is serious, which the Free Cash Flow and investment have significant negative correlation, Agency cost and corporate investment has significant negative correlation, and Financing constraints and corporate investment deficiency was positively correlated.On the basis of theoretical analysis and empirical test, this paper puts forward some related suggestions on improving the investment of small and medium-sized enterprises from the macro level and micro level respectively. The macro level includes the government's financial policy, the relevant laws and regulations, the capital market environment, the establishment of credit evaluation institutions and financing channels to expand. Micro level from the perspective of Free Cash Flow, Financing constraints and corporate governance perspective, etc., have Targeted and practical. In order to improve the investment efficiency of China's small and medium-sized board listing Corporation to provide experience for reference...
Keywords/Search Tags:Free cash flow, Agency cost, Financing constraints, Undercapitalize
PDF Full Text Request
Related items