Jiang, Wenwen; Kim, Hwa-sung - In: Journal of derivatives and quantitative studies 29 (2021) 4, pp. 301-318
The authors show that there is a negative relationship between economic policy uncertainty (EPU) and firm 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...
