Jiang, Wenwen; Kim, Hwa-sung - In: Journal of derivatives and quantitative studies 29 (2021) 4, pp. 301-318
overinvestment using Korean data from 2007 to 2016. Since Jensen (1986) shows that a firm's free cash flow is an important factor of … overinvestment, the authors examine how free cash flow influences the sensitivity of overinvestment to EPU. The authors find that a … high level of free cash flow attenuates the negative effect of EPU on overinvestment. The authors find that there is no …