Activity Overinvestment: The Case of R&D [PDF]
Journal of Management, 2017 The literature on corporate diversification has argued for and established the case that companies overdiversify in a product market sense (i.e., enter into unrelated product markets where they may not fully cover their cost of capital). Yet even without engaging in unrelated diversification, managers need to make resource allocation decisions in a ...
Ahuja, G., Novelli, E.
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Optimal Learning, Overvaluation and Overinvestment [PDF]
SSRN Electronic Journal, 2019 Periods of technological revolution are usually associated with overvaluation of and over-investment by innovating firms. This paper develops a model that explains this behavior in a frictionless rational setting. When fully rational innovating firms face uncertainty about the returns to scale of their production functions, over-investment emerges as ...
Barbosa, António
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RISK OF OVERINVESTMENT IN MUNICIPALITIES
Acta Scientiarum Polonorum. Oeconomia, 2017 This article describes investment activities of self-government territorial units. Its aim is to present the importance of investments for the provision of public services by municipalities. The opinions of the respondents about the causes of excessive or misguided investments and the ways of reducing their scale were presented.
Łukasz Satoła
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Long-term Debts and Overinvestment in Cash and Capital Expenditures: An Agency Perspective [PDF]
مطالعات تجربی حسابداری مالی, 2012 Managers' tendency to overinvestment is one of the agency costs that due to conflict of Interests between managements and shareholders the firms are encountered with.
Javad MOradi, Ahmad Rahmanian
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Pyramidal Discounts: Tunneling or Overinvestment?
International Review of Finance, 2005 Owners exploit the strong separation between ownership and control in pyramiding to establish control over several firms' internal cash flows via a very small capital investment. We establish that the large discounts on the pyramid holding company as well as on the portfolio firms at the bottom are directly linked to costs from overinvestment that ...
Martin Holmén, Peter Högfeldt
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How Can Overinvestment in Farms Affect Their Technical Efficiency? A Case Study from Poland [PDF]
AgricultureFarm overinvestment is highly dangerous in how it affects productivity and profitability. Therefore, it imperatively needs to be measured in the context of investment support offered under the Common Agricultural Policy.
Jagoda Zmyślona +2 more
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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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Retraction: Analysis of the influence of enterprise managers' overconfidence on the overinvestment behavior of listed companies under the media reports. [PDF]
Front PsycholFrontiers Editorial Office.
europepmc +3 more sources
The impact of shareholder intervention on overinvestment of free cash flow by overconfident CEOs [PDF]
, 2021 This paper examines the impact of shareholder intervention on investment distortions, which we capture using overinvestment of free cash flow by overconfident CEOs. Using this definition and U.S.
Kim, Gi Hyun, Kwon, Sewon, Ahn, Jae Hwan
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The Influence of Equity Incentive on Overinvestment in enterprises: The moderating effect based on the heterogeneity of executive team [PDF]
E3S Web of Conferences, 2021 This paper empirically examines the moderating effect of executive team heterogeneity on the influence of equity incentive on overinvestment behavior by using the data of Chinese A-share listed companies in Shanghai and Shenzhen from 2014 to 2018.
Liu Wei, Yang Tingting, Le Xiao
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