文献研读：上市公司过度投资行为的研究(最终版)5.7

Financial Management 上市公司过度投资行为的研究

Key word: Overinvestment

Team members:

Zhan Yu, Liang Ce, Wu Na and

Gao Wanling

A.相关英文文献（5篇）

B.相关中文文献（5篇）

C.总结

目录

CONTENTS

[A]

英文文献

About: Overinvestment

英文文献 About: Overinvestment

1

2

3

4

5

Jensen M. 1986. Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. American Economic Review, 76: 323～329 Conyon M, K Murphy. 2000. The Prince and the Pauper? CEO Pay in the U. S. and the U. K. Economic Journal, 110:640～671

Vogt S. 1994. The Cash Flow / Investment Relationship: Evidence from U. S. Manufacturing Firms. Financial

Management, 23: 3～20

Shleifer ,A. and R. W.

Vishny , 1997. A Survey of Corporate Governance. Journal of finance 52 ( 2) : 737-782.

Scott Richardson, 2006. Over-investment of free cash flow. Review of Accounting Studies, 11(2):159-189.

Outline

Ⅰ. Jensen M.

Agency Costs of Free Cash Flow, Corporate Finance and Takeovers.

1

Theme

The motivation to overinvestment.

2

The raise of the problem

(1) Agency theory ;

(2) Conflicting interests between the corporate managers and the shareholder;

(3) The payout of cash to shareholders creates major conflicts that have received little attention.

3

Explanation

(1)Payouts to shareholders reduce the resources under managers' control , thereby reducing managers' power, and making it more likely they will incur the monitoring of the capital markets which occurs when the firm must obtain new capital. (see M. Rozeff, 1982; F. H. Easterbrook, 1984). (2)Managers have incentives to cause their firms to grow beyond the optimal size. Growth

increases managers' power by in-creasing the resources under their control. It is also associated with increases in managers' compensation , because changes in compensation are positively related to the growth in sales(see Kevin Murphy, 1985). (3) Risk diversification

1.Free cash flow?

Cash flow in excess of that required to fund all projects that have positive net present values when discounted

at the relevant cost of capital.

2. Overinvestment?

4

The way to avoid this kind of behavior

(1) Paying cash dividend. (2) Issuing Debt.

a. Reduce the agency costs of free cash flow by reducing the cash flow available for spending at the discretion of managers.

b. Set up the required organizational incentives to motivate managers and to help them overcome normal organizational resistance to retrenchment which the payout of free cash flow often requires.

c. Increased leverage also has costs. As lever-age increases, the usual agency costs of debt rise, including bankruptcy costs. The optimal debt-equity ratio is the point at which firm value is maximized, the point where the marginal costs of debt just offset the marginal benefits.

5

Aspects need to be improved

“The agency cost of free cash flow is consistent with a wide range of data for which there has been no consistent explanation . I have found no data which is inconsistent with the theory , but it is rich in predictions which are yet to be tested.”

Ⅰ. Jensen M.

Agency Costs of Free Cash Flow, Corporate Finance and Takeovers.