Results 171 to 180 of about 794 (208)

Which Takeover Targets Overinvest?

The Journal of Financial and Quantitative Analysis, 1996
Existing research finds little evidence of overinvestment by successfully acquired targets. This paper shows how samples drawn from completed takeovers are biased against finding overinvestment and documents evidence of overinvestment in targets that use a highly lever? aged transaction to avoid a takeover.
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Overinvestment, Corporate Governance, and Dividend Initiations

SSRN Electronic Journal, 2007
Firms with high agency costs of overinvestment have significantly more positive dividend initiation announcement returns than other firms do. This paper presents the results from three experiments consistent with this conclusion: (i) dividend initiation announcement returns are significantly more positive for firms with low Tobin's Q and high cash flow;
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A Test of Stulz's Overinvestment Hypothesis

Financial Review, 1995
AbstractIn a world with agency costs and asymmetric information, managers will have difficulty raising external funds since they have incentives to overinvest. Stulz argues that this leads to an optimal level of debt since this is one way to bond cash flows and reduce managerial discretion.
Mark Klock, Clifford F. Thies
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Do Takeover Targets Overinvest?

Review of Financial Studies, 1994
I examine the capital expenditures of a sample of 700 takeover targets and firms that went private over the period 1972-1987. For the complete sample, I do not find evidence that takeover targets increase their capital expenditures over the four-year period before the acquisition or that they overinvest in capital expenditures relative to several ...
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Overinvestment in Grid Modernization Is a Real Possibility

Climate and Energy, 2023
Sixty percent of the U.S. distribution grid, which carries electricity to homes and businesses at the local level, have exceeded their 50‐year life expectancy. The Brattle Group estimates that $1.5 trillion to $2 trillion will be spent by 2030 to modernize the grid just to maintain reliability—a huge amount that elevates the importance of state public ...
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Debt Financing, Corporate Governance and Overinvestment

Advanced Materials Research, 2011
This paper examines the impact of debt financing on overinvestment in Chinese listed companies. Using an accounting-based framework to measure over-investment and free cash flow, we find evidence that, debt financing can’t mitigate overinvestment in Chinese listed manufacturing companies.
Lei Zhu, Bei Tang
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Incomplete Contracts, Asset Specificity and Overinvestment [PDF]

SSRN Electronic Journal, 1999
The paper stresses - in sharp contrast with the main contributions in the relevant literature on incomplete contracts - the strategic role of the degree of assets specificity for the enforcement of incomplete contracts. It is shown that under the assumption of endogenous outside options, (i) contractors could maintain strong incentives to make a ...
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EBITDA Disclosure and Overinvestment in Capital

SSRN Electronic Journal, 2014
This paper investigates the association between firms’ EBITDA reporting practices in earnings announcements and their capital investment decisions. I find that firms that include EBITDA in their earnings announcements over-invest in capital, are smaller, and have lower market-to-book ratios and lower profitability than non-EBITDA-reporting firms. These
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Overinvestment in the Chinese Economic System

2017
Internationales Asienforum, Bd. 14 Nr.
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The Impact of CFO Gender on Corporate Overinvestment

SSRN Electronic Journal, 2021
Yin Liu, Pamela Neely, Khondkar Karim
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