Work

Corporate Governance and the Determinants of Investment

Year: 2007

Type: article

Abstract: We use investment-cash flow regressions to show that both asymmetric-information and agency problems are more severe in Continental Europe than in the Anglo-Saxon countries leading to too little investment by firms with attractive investment opportunities and too much by those with poor investment opportunities. Legal systems, accounting standards, and ownership structure systematically affect the investment-cash flow sensitivity. Cash flow coefficients are largest for family-controlled firms in Europe.

Source: Journal of Institutional and Theoretical Economics JITE

DOI: 10.1628/093245607783242945

Authors: Klaus Gugler, B. Burcin Yurtoglu, Dennis C. Mueller

Institution: University of Vienna

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3121990646

FWCI: 12.7

Cites: 40

Cited by: 30

Related to: 10