Erasmus Research Institute of Management Report Series Research in Management Bibliographic Data and Classifications

نویسندگان

  • MANAGERI HANS DEGRYSE
  • Hans Degryse
چکیده

This paper examines the relation between cash-flow availability and investment spending in the Netherlands. In particular, we are interested whether managerial discretion and/or asymmetric information drive the positive relation between cash-flow and investment spending. This relation is positive for both firms with low and high investment opportunities. It is however significantly larger for firms with low investment opportunities suggesting that the managerial-discretion problem is most important in the Dutch setting. Effective corporate-governance may reduce this agency problem.Specific to the Netherlands, firms with low shareholder influence posit a higher cash-flow-investment sensitivity. The relevance of asymmetric information is confirmed as smaller firms and firms from information-sensitive industries show a larger cash-flow-investment sensitivity. 5001-6182 Business 4001-4280.7 Finance Management, Business Finance, Corporation Finance Library of Congress Classification (LCC) HG 2028.C45 Cash management; corporation finance M Business Administration and Business Economics G 3 Corporate Finance and Governance Journal of Economic Literature (JEL) G 31 Investment policy 85 A Business General 220 A Financial Management European Business Schools Library Group (EBSLG) 220 P Investments Gemeenschappelijke Onderwerpsontsluiting (GOO) 85.00 Bedrijfskunde, Organisatiekunde: algemeen 85.30 Financieel management, financiering Classification GOO 85.30 Financieel management, financiering Bedrijfskunde / Bedrijfseconomie Financieel management, bedrijfsfinanciering, besliskunde

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تاریخ انتشار 2001