Results 201 to 210 of about 14,040 (237)

Overinvestment when Control Separates from Ownership

SSRN Electronic Journal, 2009
In this paper, we study how separation of control from ownership affects overinvestment by presenting a simple model extended from La Porta et al. (2002). We find that firms with controlling shareholders whose control is more separated from ownership are likely to overinvest more, even if controlling shareholders expropriate funds for purpose of other ...
Baizhu Chen, Longbing Xu, Honghai Yu
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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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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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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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Discussion of “Overinvestment of free cash flow”

Review of Accounting Studies, 2006
Richardson’s paper is a useful addition to the literature on the relationship between cash flow and investment. His approach to estimating this relationship is a new twist on earlier approaches. Like most of this literature, Richardson finds evidence that firms’ investment decisions are excessively sensitive to current cash flow, suggesting that ...
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Holdups and overinvestment in capital markets

Journal of Economic Theory, 2014
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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Project Termination Decisions, Underinvestment and Overinvestment*

Contemporary Accounting Research, 2000
AbstractIn this article, I use the principal‐agent framework to examine the incentives of risk‐and work‐averse agents to work on projects that are long‐term, multistage, and subject to abandonment. Periodic applications of effort by the agent are required.
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Overinvestment in the Chinese Economic System

2017
Internationales Asienforum, Bd. 14 Nr.
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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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