Gugler, Klaus. 2003. Corporate Governance and Investment. International Journal of the Economics of Business 10 (3): 261-289.

RIS

@ARTICLE{Gugler2003,
title = {Corporate Governance and Investment},
author = {Klaus Gugler},
year = {2003},
volume = {10},
number = {3},
language = {EN},
pages = {261-289},
journal = {International Journal of the Economics of Business},
abstract = {This paper contributes at least threefold to the investment-cash flow literature. First, it finds that the corporate governance environment of a firm affects the relationship between investment and cash flow. Second, we allow for both asymmetric information and managerial discretion explanations for positive investment-cash flow coefficients, thereby overcoming most of the ambiguities in this interpretation. Finally, by using a GMM estimator we avoid most of the problems with traditional OLS models. We find that family-controlled firms appear to suffer from cash constraints as evidenced by a positive and robust relationship of investment to cash flow. State-controlled firms also exhibit a positive and significant cash flow sensitivity, which we explain by managerial discretion.},
}