Free cash flow, over-investment and corporate governance in China

doi:10.1016/j.pacfin.2015.06.003

科研成果详情

题名	Free cash flow, over-investment and corporate governance in China
作者	Chen，Xin 1; Sun，Yong 2; Xu，Xiaodong 1
发表日期	2016-04-01
发表期刊	Pacific Basin Finance Journal
ISSN/eISSN	0927-538X
卷号	37 页码:81-103
摘要	We investigate whether and how free cash flow and corporate governance characteristics affect firm level investments, using a sample of 865 Chinese listed firms. Consistent with the agency cost explanation, we find that firms' over-investment is more sensitive to current free cash flow and that over-investment is more pronounced in firms with positive free cash flows. Also, we find that certain corporate governance characteristics are significantly related to firm level investment. Further, we divide the full sample into two subsamples: over-investment firms and under-investment firms. For over-investment firms, our evidence indicates that higher state-ownership concentration boosts over-investment, while firms with higher proportion of tradable shares, larger board size of supervisors or higher leverage mitigate over-investment. For under-investment firms, our evidence shows that firms with higher state-ownership concentration, larger board size of directors or higher proportion of outside directors are associated with severer under-investment, while firms with higher leverage or higher proportion of tradable shares alleviate under-investment.
关键词	China Corporate governance Free cash flow Over-investment
DOI	10.1016/j.pacfin.2015.06.003
URL	查看来源
语种	英语English
Scopus入藏号	2-s2.0-84960849840
引用统计	被引频次：86[WOS] [WOS记录] [WOS相关记录]
文献类型	期刊论文
条目标识符	https://repository.uic.edu.cn/handle/39GCC9TT/6411
专题	北师香港浸会大学
通讯作者	Xu，Xiaodong
作者单位	1.Department of Accountancy,Antai College of Economics and Management,Shanghai Jiao Tong University,Shanghai,535 Fahua Zhen Road,200052,China 2.Division of Business and Management,United International College,Beijing Normal University,Hong Kong Baptist University,Zhuhai, Guangdong,28 Jinfeng Road,519085,China
推荐引用方式 GB/T 7714	Chen，Xin,Sun，Yong,Xu，Xiaodong. Free cash flow, over-investment and corporate governance in China[J]. Pacific Basin Finance Journal, 2016, 37: 81-103.
APA	Chen，Xin, Sun，Yong, & Xu，Xiaodong. (2016). Free cash flow, over-investment and corporate governance in China. Pacific Basin Finance Journal, 37, 81-103.
MLA	Chen，Xin,et al."Free cash flow, over-investment and corporate governance in China". Pacific Basin Finance Journal 37(2016): 81-103.