Research ArticleOpen AccessGoogle Scholar indexed
Over-Investment of Free Cash Flow during CEO’s Tenure
College of Management, Jinan University, Guangzhou, China
- 1 College of Management, Jinan University, Guangzhou, China
Technology and Investment·Volume 07 (2016)·Pages 51–58·Published 28 July 2016·DOI10.4236/ti.2016.73007
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Abstract
This paper examines the relationship between CEO’s tenure and their firm’s investment efficiency. Over-investment is greater in the early years than in the later years of CEO’s service. Consistent with prior literature, the results also suggest over-investment increases with firm’s internally-generated cash flow.
KeywordsOver-InvestmentFree Cash FlowTenure
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