Agency costs of free cash flow and conditional conservatism
نویسندگان
چکیده
منابع مشابه
Agency Costs, Free Cash Flow and It Expenditures
1.0 INTRODUCTION In the past few decades, U.S. businesses have made large investments in information technology (IT), without decisive evidence about the value of such investments [1]. A natural question that arises in this context is whether managers have wasted organizational resources through large investments in IT. In his well-known free cash flow hypothesis, Michael Jensen argues that man...
متن کاملAgency Cost under the Restriction of Free Cash Flow
Agency cost theory is an important branch of capital structural theory. Free cash flow has significant impact on agency cost. The combination of research on these two fields would help to build and extend the theoretical system. Based on agency cost theory, the present study firstly categorized the characteristics of free cash flow as well as the statistical methodologies. Furthermore, the exis...
متن کاملcross sectional variation in cash flow asymmetric timeliness and its effect on conditional conservatism
the current study aims to review the cross sectional variation in cash flow asymmetric timeliness and its effect on conditional conservatism. in this study, data from 120 firms in tehran stock exchange for the period spanning 1384- 1390 were examined. the regression model used in this research is panel data method with fixed effects approach. the most common measure of conditional conservatism ...
متن کاملFree Cash-Flow, Issuance Costs and Stock Volatility∗
We study the issuance and payout policy that maximizes the value of a firm facing both agency costs of free cash-flow and external financing costs. We find that firms have target cash levels and optimally issue equity when they run out of cash. We characterize the process modelling the number of outstanding shares and the dynamics of the stock prices. In line with the leverage effect identified...
متن کاملThe Impacts of Free Cash Flows and Agency Costs on Firm Performance
This paper investigates how free cash flow (FCF) is associated with agency costs (AC), and how FCF and AC influence firm performance. The research purpose is therefore threefold. Specifically, the study is to explore the impact of FCF on AC, to re-examine the free cash flow hypothesis, and to test the agency theory based on the empirical data from Taiwan publicly-listed companies. The study use...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Advances in Accounting
سال: 2019
ISSN: 0882-6110
DOI: 10.1016/j.adiac.2019.04.002