DocumentCode
2202357
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
fYear
2009
fDate
20-22 Sept. 2009
Firstpage
1
Lastpage
4
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.
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;
fLanguage
English
Publisher
ieee
Conference_Titel
Management and Service Science, 2009. MASS '09. International Conference on
Conference_Location
Wuhan
Print_ISBN
978-1-4244-4638-4
Type
conf
DOI
10.1109/ICMSS.2009.5305848
Filename
5305848
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