The Agency Costs of Overvalued Equity and the Current State of Corporate Finance

By Michael C. Jensen. 2004

199 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/631d6ae947e61ebb56b7e668f857aa398b8bb1d5

How researchers see this paper

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In Accounting

1. Pavel Savor
2. Qingchun Lu
3. C. Vansteenkiste
4. Luc Renneboog

In Strategy and Management

1. Pavel Savor
2. Qingchun Lu

Citations in the corpus

• Anticipation, Acquisitions and Bidder Returns: Industry Shocks and the Transfer of Information Across Rivals (2011, unknown): “Roll (1986), Jensen (2004), and Shleifer and Vishny (2003) argue the influence of hubris and overvaluation as explanations for bidder returns.”
• Do Stock Mergers Create Value for Acquirers (2009, background): “Jensen (2004) also argues that overvaluation influences firms’ acquisition decisions, as managers of the affected firms attempt to prolong (or exacerbate) the mispricing.”
• CEO Decision Horizon and Firm Performance: An Empirical Investigation (2010, unknown): “The Leverage ratio is significantly and negatively related to agency costs, which lends support to Jensen (1986)’s free cash flow theory, and is consistent with the notion that debt can be used to alleviate agency costs of free”