THE IMPACT OF FREE CASH FLOW ON BUSINESS EFFICIENCY OF FOOD COMPANIES
Abstract
This study examines the relationship between free cash flow and the business efficiency of food companies listed on the Vietnam Stock Market. Using data from financial statements of 37 food companies during the period from 2014 to 2018, the study analyzes the impact of free cash flow and other factors on companies's business efficiency. By using FEM and REM models, the result shows that free cash flow has positive impact on business efficiency, particularly the impact level will be greater for companies with investment opportunities. In addition, the study also shows the impact of factors such as asset efficiency, capital structure and scale on business efficiency of companies
Keywords: free cash flow, business efficiency.