Title :
Notice of Retraction
Free Cash Flow and Overinvestment - An Empirical Evidence from China Securities Market
Author :
Jian Jianhui ; Yu Zhongfu ; He Pinglin
Author_Institution :
Sch. of Bus. & Manage., North China Electr. Power Univ., Beijing, China
Abstract :
Notice of Retraction
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
Because of principal-agent relationship between managers and shareholders, managers´ opportunism often leads to overinvestment in the presence of free cashflow. This paper proves that there is a significantly positive correlation between overinvestment and free cashflow in China´s listed companies from the year 2003 to 2005 by empirical method, which is consistent with agency cost explanations. The empirical analysis uses an accounting based framework to measure the free cashflow and overinvestment.
Keywords :
accounting; decision making; decision theory; investment; securities trading; China securities market; accounting based-framework; agency cost explanation; decision making theory; empirical analysis; empirical evidence; free cash flow; manager opportunism; overinvestment; principal-agent relationship; Companies; Costs; Energy management; Finance; Financial management; Fluid flow measurement; Helium; Investments; Project management; Security;
Conference_Titel :
Management and Service Science, 2009. MASS '09. International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-4638-4
DOI :
10.1109/ICMSS.2009.5305848
