The Impact of Free Cash Flow and Capital Structure on the Performance of the Company

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Abstract:

This paper studied the impact of free cash flow and capital structure on the performance of the company. It is based on the theories of the free cash flow and the capital structure, combined with the actual situation of China, using different property listed corporations’ sample, makes an empirical study on the impact of free cash flow and capital structure on the performance of the company. The result shows that on the one hand, having more free cash flow will cause negative effects on the performance of corporation, on the other hand, with the increase in liabilities financing, the listed corporation's performance fall.

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305-309

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August 2014

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© 2014 Trans Tech Publications Ltd. All Rights Reserved

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[13] 2990 Standard deviation State-owned.

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[12] 3694 3372. 600 F. Pearson correlation analysis To avoid multicollinearity, we apply the Pearson correlation coefficient to test the correlation between variables. Table 3 Pearson correlation analysis Index ROA LEV FCF LNSIZE Z GROWTH ROA State-oned.

DOI: 10.7717/peerj.10198/table-1

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