The Research On Control Of Listed Companies To Affect Invest Efficiency Through Free Cash Flow Impact

Since the core of corporate governance research is transferred to the second category of agency problems since. Theoretical research, the largest shareholder interests of small shareholders occupation means and mechanism to popular attention. Investment as a source of corporate value creation, is the study of large shareholders to grab control of the gain, the effective path emptied listed companies. The investment efficiency of listed companies that best reflect the level of investment. From a practical point of view, in the context of our transitional economy, ownership concentration phenomenon is particularly evident, the listed investment company behind the phenomenon of many anomalies have controlling shareholders manipulate marks.In combing the basis of the existing literature, we use the investment-free cash flow relationship as a starting point, relying on the free cash flow hypothesis, the following questions to verify the theoretical analysis and empirical methods by combining:a large shareholder control, Free cash flow and the relationship between the proportion of cash reinvestment; two, overinvestment and underinvestment enterprise and free cash flow is a linear relationship, and focus on the big shareholders control over the investment efficiency-affect the relationship between free cash surplus and deficiency.Through empirical analysis found that the free cash flow hypothesis is still applicable to today's China's listed companies, corporate free cash flow and excessive investment showing a strong positive correlation with the lack of investment showing a certain extent. In addition, we find that although the major shareholder of control and excessive investment showed a positive correlation, but can weaken the positive relationship between free cash flow and investment efficiency. This is the largest shareholder control study affect the efficiency of investment analysis provides empirical data path.