Results 241 to 250 of about 3,749 (275)

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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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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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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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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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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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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Corporate social responsibility overinvestment in mergers and acquisitions

International Review of Financial Analysis, 2021
Weijie Lu, Zhenkun Wang
exaly  

Explaining malinvestment and overinvestment

The Quarterly Journal of Austrian Economics, 2006
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