The effect of corporate geographic location on over-investment
This paper aims to shed light on the effect of a firms geographic location on its over-investment by using different location variables based on a sample of 1936 Chinese listed firms spanning from 2007 to 2016.We find that remotely located firms have higher level of over-investment.Remotely located firms with more free cash flow face severer over-investment problem.In further research,we examine whether institutional investors can mitigate remote firms over-investment.However,we find that institutional investors have no governance effect on remote firms over-investment.
geographic location over-investment Institutional investors information asymmetry agency problem
Xintong Shi Wenbin Bao
Nanjing University of Science and Technology,China
国际会议
上海
英文
1054-1059
2017-10-21(万方平台首次上网日期,不代表论文的发表时间)