search query: @indexterm corporate governance / total: 739
reference: 146 / 739
| Author: | Franzoni, F. |
| Title: | Underinvestment vs. overinvestment: evidence from price reactions to pension contributions |
| Journal: | Journal of Financial Economics
2009 : JUN, VOL 92:3, p. 491-518 |
| Index terms: | corporate governance investments finance |
| Language: | eng |
| Abstract: | The paper aims to develop an identification strategy for the effect of external financing and managers' empire-building preferences on the value of the company, which both are predicted to increase internal resources. The effect of these theories on market value is tested. In more financially constrained firms the decrease in price after the payment of pension contributions seems to magnify. In turn, low control on managerial discretion reduces the negative price effect. Overinvestment appears to be the dominant distortion in large firms, whereas underinvestment is found more in all sized listed companies. |
SCIMA