Agency Cost, Top Executives’ Overconfidence, and Investment-Cash Flow Sensitivity - Evidence from Listed Companies in China

By Wei Huang, Fuxiu Jiang, Zhibiao Liu, Min Zhang. 2011

194 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

A balancing act: Managing financial constraints and agency costs to minimize investment inefficiency in the Chinese market (2016, methodology): “Following the literature (Chen et al. 2010; Huang et al. 2011), we calculate Tobin’s Q as the sum of the market value of tradable stocks, the book value of non-tradable stocks, and the book value of debt divided by the book value of total assets.”
Managerial Ability, Investment Efficiency and Stock Price Crash Risk (2017, unknown): “Empirical evidence reveals that managerial overconfidence can lead to distortions in corporate investment decisions (Huang et al., 2011; Lin et al., 2005; Malmendier and Tate, 2005), and result in value-destroying mergers (Malmendier and Tate, 2008).”
Free cash flow, over-investment and corporate governance in China (2016, methodology): “Huang et al. (2011) also examine the effect of agency cost using the data from Chinese listed companies.”
To what extent does corporate liquidity affect M&A decisions, method of payment and performance? Evidence from China (2017, methodology): “Following the literature (Chen et al. 2011b; Huang et al. 2011), we calculate Tobin’s Q as the sum of the market value of tradable stocks, the book value of non-tradable stocks, and the market value of net debt, divided by the book value of total assets.”