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Is Investment-Cash Flow Sensitivity Caused by the Agency Costs or Asymmetric Information? Evidence from the UK [PDF]

open access: yes
We investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive.Is this suboptimal investment policy the result of agency problems when managers with high discretion
Pawlina, G., Renneboog, L.D.R.
core  

Free Cash-Flow, Issuance Costs and Stock Price Volatility [PDF]

open access: yes
We study the issuance and payout policies that maximize the value of a firm facing both agency costs of free cash-flow and external financing costs. We find that the firm optimally issues equity.
Rochet, Jean-Charles   +3 more
core  

Does the Investment Opportunities Bias Affect the Investment-Cash Flow Sensitivities of Unlisted SMEs? [PDF]

open access: yes
Using a panel of 5,999 small and medium-sized Belgian enterprises (SMEs) over the period 2002-2008, we identify three measures of investment opportunities suitable for unlisted firms. We then estimate firm-varying investment-cash flow sensitivities (ICFS)
Bert D’Espallier, Alessandra Guariglia
core  

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