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Excess Cash Flow: A Signal for Institutional and Corporate Governace Book

Excess Cash Flow: A Signal for Institutional and Corporate Governace
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Excess Cash Flow: A Signal for Institutional and Corporate Governace, , Excess Cash Flow: A Signal for Institutional and Corporate Governace
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  • Excess Cash Flow: A Signal for Institutional and Corporate Governace
  • Written by author Rahul Dhumale
  • Published by Palgrave Macmillan, December 2002
  • Economic studies which examine the financing patterns of firms, particularly in emerging markets, seldom consider the market environment in which they operate. The most recent Asian financial crisis and its exposure of institutional failures in the contex
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Authors

List of Tables
List of Figures
Acknowledgements
1Introduction1
2Internal Finance as a Source of Investment: Managerial/Principal Agent or Asymmetric Information Approach?13
3Cash Retention Strategies: Test of Free Cash Flow Theory23
4The Cost of Capital: Earnings Retention vs. Leverage82
5Earnings Retention as a Specification Mechanism in Predicting Corporate Bankruptcy114
6Factors Affecting the Market for Corporate Control: The Role of Excess Cash, Diversification, and Predation during Mergers and Acquisitions151
7Conclusions182
App. 1Derivation of model constraints191
App. 2Deriving the relationship between investment probability and [phi]193
Notes195
Bibliography202
Index212


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