A Test of the Free Cash Flow Hypothesis: The Impact of Increased Institutional Holdings on Firm Characteristics *

By Sigitas Karpavičius, Fan Yu. 2011

136 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d4536dad56197b95df24d2fff3ec91b1f2c07fcc

Citations in the corpus

• Product Market Competition, Corporate Governance, and Firm Value: Evidence from the EU Area (2011, unknown): “…coefficient on the CGI is further evidence of the well-known result that the negative returns to acquirer stocks after they announce a bid for another firm are correlated with agency problems such as low managerial ownership (Lewellen et al., 1985) or high free cash flow (Lang et al., 1991).”
• Effects of Industry- and Region-Specific Acquisition Experience on Value Creation in Cross-Border Acquisitions: The Moderating Role of Cultural Similarity (2015, unknown): “Following Lang et al. (1991), free cash flow (operating income before depreciation) was normalized by total assets since the same cash flow has different implications for firms of different sizes.”
• Directors’ and Officers’ Liability Insurance and Acquisition Outcomes (2011, unknown): “All these characteristics have been discussed in the literature as potential determinants of acquirer decisions and outcomes (e.g., Jensen, 1986; Lang, Stulz, and Walkling, 1991; Shleifer and Vishny, 2003; Masulis et al., 2007).”
• Riding the Merger Wave: Uncertainty, Reduced Monitoring, and Bad Acquisitions (2013, unknown): “Lang, Stulz, and Walkling (1991) and Servaes (1991) find a positive relation for tender offer acquisitions and public firm acquisitions, respectively.”
• Corporate Social Responsibility and Investment Efficiency (2016, unknown): “Blanchard et al. (1994), and Lang et al. (1991), empirically investigate the agency view and confirm that it is a principal source of investment inefficiency.”
• Value creation from M&As: New evidence (2017, unknown): “…(Fuller et al, 2002 and Billett and Qian, 2008); xi) the acquiring firm’s leverage (Maloney et al., 1993) and FCF ratios (see e.g. Jensen, 1988; Lang et al., 1991); xii) a high market valuation indicator ( HIGH MKT VAL ) equal to one when the deal is announced during a month with an…”
• The effect of financial reporting quality on corporate dividend policy (2017, unknown): “Consistent with prior research (e.g., Lang et al. 1991; Opler and Titman 1993), we identify firms with relatively more free cash flow problems based on both cash flow from operations and growth opportunities.”
• Accounting conservatism and corporate governance (2009, unknown): “…firm size (Demsetz and Lehn 1985); growth opportunities (Smith and Watts 1992); firm age (Bushman et al. 2004); free cash flow (Jensen 1986; Lang et al. 1991); idiosyncratic risk (Demsetz and Lehn 1985); leverage (Cremers and Nair 2005); industry concentration and geographic concentration…”
• Employee Treatment and Firm Leverage: A Test of the Stakeholder Theory of Capital Structure (2011, unknown): “Specifically, following Lang, Stulz, and Walkling (1991), we first measure free cash flow as follows: operating income before depreciation – interest expenses – income taxes – decrease in deferred tax and tax credit – dividends on common stocks and preferred stocks.”