mitigates the overinvestment problem.Likewise, lower debt maturity can improve investment efficiency, reducing … financial reporting quality and debt maturity in investment efficiency.The results show that financial reporting quality … bothoverinvestment and underinvestment problems. We further find that financial reportingquality and debt maturity are mechanisms with …

We study the effect of bank loans on Chinese publicly listed firms' investment decisions based on the underinvestment … and overinvestment theories of leverage. Evidence from China is of particular importance because China is the world … investment for Chinese publicly listed firms. And this negative relationship is much stronger for firms with low growth than …

, managerial optimism (pessimism) makes overinvestment (underinvestment) more likely. Interestingly, the overinvestment …This study has two objectives: to examine the relationship between managerial sentiment and corporate investment and to … examine the relationship between investment and firm value. We use a sample of Taiwanese firms and find that an optimal level …

its access to external financing at lower cost, thereby prevents firms' overinvestment and underinvestment. These studies … influential accounting principles. At the same time, the efficiency of investment is a key to the existence and development of a … firm. Therefore, how the conservative accounting policy influences the efficiency of a firm's investment deserves deep …

financing, GOF politically connected firms decreased overinvestment, while underinvestment undergoes an upward trend in the MPCP …Using a database of firms issuing short-term financing bonds and mid-term notes in China from 2007 to 2011, we uncover … politically connected firms have significantly lower capital allocation efficiency, especially in the case of overinvestment …

institutional protection of shareholder benefits reduces both underinvestment and overinvestment in R&D projects. Legal shareholder …This paper investigates the effects of shareholder protection law on corporate R&D investment. I find that the … rights significantly increase R&D investment for firms that may underinvest, but reduce R&D for firms that may overinvest …

investment efficiency through three main channels: (1) by decreasing the adverse effect of information asymmetries between … outside equity holders and managers, facilitating the monitoring of managerial investment decisions; (2) by increasing …-2007 we find a negative association between conservatism and measures of over- and under- investment, and a positive …

improve the firm’s investment efficiency and increase firm value by reducing the degree of overinvestment.The results …This study investigates the relationship between managerial optimism, investment efficiency and firm valuation. This … managerial optimism on improving investment efficiency and firm value when firms tend to under-invest or over-invest. The results …

mitigates the overinvestment problem. Likewise, lower debt maturity can improve investment efficiency, reducing both … overinvestment and underinvestment problems. We further find that financial reporting quality and debt maturity are mechanisms with … financial reporting quality and debt maturity in investment efficiency. The results show that financial reporting quality …

market's assessment of the value of internal resources controlling for investment opportunities. The drop in prices following … effect of financing frictions on investment. In contrast, price reactions to pension contributions are positive for poorly … overinvestment have similar weight in a panel of large firms, the first distortion prevails in a sample that is more representative …