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marginal cash-savings rate that overstates individual issuers’ cash savings. Equity issuers with high investment opportunities …
Persistent link: https://www.econbiz.de/10013492308
We examine the effect of agency cost on the relation between top executives' overconfidence and investment-cash flow … increased investment-cash flow sensitivity. However, this relation holds only for companies with state-owned entities as … investment-cash flow sensitivity holds only for companies that exhibit high agency cost. Our results therefore suggest that …
Persistent link: https://www.econbiz.de/10013106316
Many studies of the determinants of investment use Tobin's q to control for the investment opportunities of a firm …. Tobin's q roughly measures the average return on a firm's capital anticipated by the market. More relevant for investment … decisions, however, is the marginal return on capital. In this paper we estimate investment and R&D equations using a measure of …
Persistent link: https://www.econbiz.de/10012975232
a data set of Indonesian listed firms for the period from 1995 to 2014, we find that excessive cash holding (over-investment …
Persistent link: https://www.econbiz.de/10012859255
This study aims to analyze how the company's internal funds and investment opportunities impact the company …’s investment decisions conditional to the financing constraints experienced. We classify companies into three categories based on … financing constraint have a higher investment-cash flow sensitivity than companies with a low financing constraint. We found …
Persistent link: https://www.econbiz.de/10014359280
Being a publicly listed firm is associated with costs and benefits related to investment, financing, and payout … investments, financing, and payouts during the financial crisis. While investment adjustments are identical, public firms net …
Persistent link: https://www.econbiz.de/10012999926
The DCF method or multiples are used to value companies in practice. Starting with the value additivity principle, the paper presents a general framework for DCF valuation. This framework allows defining stepwise and aggregated approaches to value risky cash flows and identifying inconsistent...
Persistent link: https://www.econbiz.de/10012926265
The correct definition and calculation of the free cash flows plays a crucial role in the process of valuing companies. The two main components of a valuation model, free cash flow and the costs of capital, need to be determined simultaneously. The different approaches to valuation are different...
Persistent link: https://www.econbiz.de/10013146154
Large cash reserves have typically been associated with agency problems and poor investment decisions. I explore the …
Persistent link: https://www.econbiz.de/10013065183