Empirical Studies On Free Cash Flow,Market Value Management And Corporate Performance

In recent decades,many scholars and company managers at home and abroad have realized the impact of free cash flow and market value management on company performance,and conducted some theoretical research and practical exploration.However,from the existing research results,there are relatively many research results on free cash flow,market value management,and single performance of company performance.Some results have also studied free cash flow and company performance,market value management and company performance,but The research results of systematic analysis of free cash flow,market value management,and company performance are relatively few,and theoretical and practical research is relatively lagging.Based on this,the research in this paper has important significance.Guided by the theory of free cash flow,market value management and company performance,this paper examines the relationship between free cash flow,market value management and company performance,and free cash flow and market value management.Based on the mechanism and extent of performance,the paper puts forward specific suggestions and countermeasures to improve the performance of’enterprises by using free cash flow and market value management thinking.Through research,it demonstrates the effect of free cash flow and market value management of GEM listed companies on improving company performance.Based on this,four hypotheses are proposed:(1)effective market value management will promote the improvement of company performance;(2)free cash flow It has a positive effect on market value management;(3)free cash flow can improve company performance;(4)market value management as an intermediary variable has an important impact on the relationship between free cash flow and company performance.In the study,the financial data of 293 enterprises in China’s GEM market in 2011-2017 is taken as an example.The scale of the enterprise,the asset-liability ratio and the cash stock are added as control variables in the model construction.The empirical results show that the GEM listed companies in China.Mid-market management has a positive effect on company performance,and free cash flow can have an impact on company performance by affecting market value management.On the basis of empirical research,this paper proposes to appropriately strengthen the effective control of free cash flow,optimize the capital structure and governance structure of enterprises,improve the decision-making efficiency of enterprise management,improve the level of internal control,improve the incentive system of stock options,and improve the operators.Suggestions such as market value assessment and strengthening the construction of the company system,in order to guide the investment of managers,and thus improve the market value management level and company performance.