Empirical Study on Institutional Investors, Free Cash Flow and Corporate Performance

Abstract

In recent years, the institutional investors play a vital role in corporate governance. Institutional investors have gradually been affirmed of great importance in the company management with the increase of their stake. The problem of free cash flow has caused more and more attention. And it has gradually become an important factor for investors to measure the corporate performance and the development of the company. It is directly related to the significant improvement of the corporate performance that how to perform the institutional investors’ shareholder activism and how to strengthen the regulation of free cash flow usage. The Features of Current Sports Media in China In recent years, the number of the institutional investors has grown and the shareholder activism of institutional investors has increasingly appeared. The convertible bonds incident of China Merchants Bank, the fund boycott of issuing H shares of ZTE, the rejected additional motion of Chongqing store reflect the active participation of institutional investors in corporate governance and equity restriction. They also show the institutional investors’ unique advantages and strength in corporate governance structure.