| Today, the enterprise's competitive market system is perfect, the survival and development of enterprises is hard. Capital is the key to survival and growth. Now there are many ways to raise money, such as absorbing direct investment. Equity financing and debt financing are two effective ways. Their proportion is the concern of the domestic scholars and enterprises. The key factor is the stock price, the stock price is an important indicator of enterprise value. Free cash flow is the "blood" of the enterprise survival, and the decision of the length of the duration of the enterprise. A longer duration is a characteristic of medical and pharmaceutical enterprises when Compared with other companies. At present, there are many famous listed pharmaceutical company which are hundred years old, such as Ma Yinglong, Yunnan Baiyao, Tongrentang.From the perspective of free cash flow and financial leverage, the research results show that investment cash flow, financial leverage are negatively related to the stock price, operating cash flow, financing cash flow, operating leverage, compound leverage are positively related to the price, but the correlation are weak. Through the empirical analysis, the paper gives reasonable suggestions to domestic medical and pharmaceutical industry. |
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