Agency Conflicts and the Marginal Value of Capital Expenditure in Australian Listed Companies

IF 0.3 Q4 BUSINESS, FINANCE

Review of Pacific Basin Financial Markets and Policies Pub Date : 2021-03-01 DOI:10.1142/S0219091521500016

James Butchers, G. S. Bhabra, Harjeet S. Bhabra, Anindya Sen

引用次数: 0

Abstract

We examine the value implications of Jensen’s free cash flow hypothesis for a sample of Australian listed companies. Consistent with the US evidence in Masulis, R, C Wang and F Xie (2009). Agency problems at dual-class companies. Journal of Finance, 64(4), 1697–1727, we find that the marginal value of corporate capital expenditures in Australian listed companies is inversely related to the magnitude of agency conflicts arising out of the use of free cash flows. Our results suggest that firms where managers have a greater ability to extract private benefits and are therefore more likely to maximize their own private benefits rather than shareholder wealth will suffer from a lower perceived valuation of their capital investments. Our findings are robust to alternative proxies for relative cash flows and growth opportunities and also hold over multiple sub-periods and industry groupings.

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代理冲突与澳大利亚上市公司资本支出的边际价值

我们以澳大利亚上市公司为样本，检验了詹森自由现金流假说的价值含义。与美国在Masulis，R，C Wang和F Xie（2009）中的证据一致。双重类别公司的代理问题。《金融杂志》，64（4），1697-1727，我们发现澳大利亚上市公司公司资本支出的边际价值与自由现金流使用引起的代理冲突的程度成反比。我们的研究结果表明，如果管理者有更大的能力提取私人利益，因此更有可能最大限度地提高自己的私人利益，而不是股东财富，那么公司的资本投资估值就会降低。我们的研究结果对相对现金流和增长机会的替代指标是稳健的，也适用于多个子时期和行业分组。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Pacific Basin Financial Markets and Policies BUSINESS, FINANCE-

CiteScore

1.30

自引率

11.10%

发文量

期刊介绍： This journal concentrates on global interdisciplinary research in finance, economics and accounting. The major topics include: 1. Business, economic and financial relations among the Pacific rim countries. 2. Financial markets and industries. 3. Options and futures markets of the United States and other Pacific rim countries. 4. International accounting issues related to U.S. companies investing in Pacific rim countries. 5. The issue of and strategy for developing Tokyo, Taipei, Shanghai, Sydney, Seoul, Hong Kong, Singapore, Kuala Lumpur, Bangkok, Jakarta, and Manila as international or regional financial centers. 6. Global monetary and foreign exchange policy, and 7. Other high quality interdisciplinary research in global accounting, business, economics and finance.