An investigation on the effect of the corporation governance structure and free cash flow on over- investment
This study examines the impact of corporate governance structure and free cash flow on over-investment on 121 firms listed in Tehran Stock Exchange over the period 2008-2011. To measure over-investment, free cash flow and corporate governance variables based on available information reported on fina...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2014-03-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/Vol4/msl_2014_7.pdf |
| _version_ | 1818701034621501440 |
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| author | Mehdi Taghavi Mohammad Khodaei Valahzaghard Neda Amirjahadi |
| author_facet | Mehdi Taghavi Mohammad Khodaei Valahzaghard Neda Amirjahadi |
| author_sort | Mehdi Taghavi |
| collection | DOAJ |
| description | This study examines the impact of corporate governance structure and free cash flow on over-investment on 121 firms listed in Tehran Stock Exchange over the period 2008-2011. To measure over-investment, free cash flow and corporate governance variables based on available information reported on financial statements are gathered and using cross section regression method, different hypotheses of the survey are examined. The results indicate that among corporate governance mechanisms investigated in survey, there is a significant relationship between percentage of non-executive directors and ownership concentration with over-investment. However, there was no meaningful relationship among controlling shareholders and duality with over-investment. Furthermore, a significant relationship between free cash flow and over-investment has been found. |
| first_indexed | 2024-12-17T15:14:25Z |
| format | Article |
| id | doaj.art-eb4e6bec266d4e4b9028af075a748a32 |
| institution | Directory Open Access Journal |
| issn | 1923-2934 1923-9343 |
| language | English |
| last_indexed | 2024-12-17T15:14:25Z |
| publishDate | 2014-03-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-eb4e6bec266d4e4b9028af075a748a322022-12-21T21:43:34ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-03-014356757210.5267/j.msl.2014.1.007An investigation on the effect of the corporation governance structure and free cash flow on over- investmentMehdi TaghaviMohammad Khodaei ValahzaghardNeda AmirjahadiThis study examines the impact of corporate governance structure and free cash flow on over-investment on 121 firms listed in Tehran Stock Exchange over the period 2008-2011. To measure over-investment, free cash flow and corporate governance variables based on available information reported on financial statements are gathered and using cross section regression method, different hypotheses of the survey are examined. The results indicate that among corporate governance mechanisms investigated in survey, there is a significant relationship between percentage of non-executive directors and ownership concentration with over-investment. However, there was no meaningful relationship among controlling shareholders and duality with over-investment. Furthermore, a significant relationship between free cash flow and over-investment has been found.http://www.growingscience.com/msl/Vol4/msl_2014_7.pdfOver InvestmentFree Cash FlowCorporate Governance |
| spellingShingle | Mehdi Taghavi Mohammad Khodaei Valahzaghard Neda Amirjahadi An investigation on the effect of the corporation governance structure and free cash flow on over- investment Management Science Letters Over Investment Free Cash Flow Corporate Governance |
| title | An investigation on the effect of the corporation governance structure and free cash flow on over- investment |
| title_full | An investigation on the effect of the corporation governance structure and free cash flow on over- investment |
| title_fullStr | An investigation on the effect of the corporation governance structure and free cash flow on over- investment |
| title_full_unstemmed | An investigation on the effect of the corporation governance structure and free cash flow on over- investment |
| title_short | An investigation on the effect of the corporation governance structure and free cash flow on over- investment |
| title_sort | investigation on the effect of the corporation governance structure and free cash flow on over investment |
| topic | Over Investment Free Cash Flow Corporate Governance |
| url | http://www.growingscience.com/msl/Vol4/msl_2014_7.pdf |
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