Investment – Cash Flow Sensitivity and Factors Affecting Firm’s Investment Decisions

Investment – Cash Flow Sensitivity and Factors Affecting Firm’s Investment Decisions

Author: zant worldpress

Corporate financial structure and financing resources are very important for a firm in their investment decisions and value enhancement. Firms may seek for the cheapest financing resources while maximizing their return from investment. By using panel data analysis, this paper demonstrated the investment-cash flow sensitivity and the others factors affecting the firm’s investment decisions. Result shows that there is significant negative investment-cash flow sensitivity. This implied that firms underinvest due to information asymmetry. This study also found others factors such as the former year’s firm’s tangibility, size, dividend, investment opportunity as well as debt level can significantly affect the firm’s investment decisions. Depreciation and financial constraint were found no impact on the firm’s investment decisions. These findings have significant implications for firm’s value enhancement in financing and investment decisions.

JEL Codes: G32, G33, and G35

Total Reviews: 0

Price:$9.99

Browse Wishlist

Delivery System

After completion purchase and payment you will get an email with download link of book. You can download this book within 24 hours. Be remember you can't download this book after 24 hours.

Reviews

There are no reviews yet.

Be the first to review “Investment – Cash Flow Sensitivity and Factors Affecting Firm’s Investment Decisions”