Is the free cash flow hypothesis valid in Turkey?
نویسندگان
چکیده
منابع مشابه
The Free Cash Flow Hypothesis for Sales Growth and Firm Performance
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Richardson’s paper is a useful addition to the literature on the relationship between cash flow and investment. His approach to estimating this relationship is a new twist on earlier approaches. Like most of this literature, Richardson finds evidence that firms’ investment decisions are excessively sensitive to current cash flow, suggesting that violations of the Modigliani–Miller assumptions a...
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This paper examines the extent of firm level over-investment of free cash flow. Using an accounting-based framework to measure overinvestment and free cash flow, I find evidence that, consistent with agency cost explanations, over-investment is concentrated in firms with the highest levels of free cash flow. Further tests examine whether firms’ governance structures are associated with over-inv...
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ژورنال
عنوان ژورنال: Borsa Istanbul Review
سال: 2017
ISSN: 2214-8450
DOI: 10.1016/j.bir.2016.12.001