The Impact Of Free Cash Flow On Firm Performance: Evidence From Listed Food And Beverage Companies On Ho Chi Minh Stock Exchange (Hose) And Ha Noi Stock Exchange (Hnx)

Abstract

The article studies the relationship between free cash flow and performance of food joint stock companies listed on Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX). Using data from the financial statements of 30 companies in the food industry for the period 2015-2021, the study analyzes the effects of free cash flow and several other factors on the company's performance. Research results with FEM and REM models show that free cash flow (FCF) has a positive impact on operating efficiency. Besides, the study also shows the impact of factors such as Growth rate (GROWTH), Asset turnover ratio (ASST), Operating expense ratio (OPER), Debt ratio (DA), Firm size (SIZE) on firm performance.