This paper investigates how free cash flow (FCF) is associated with agency costs (AC), and how FCF and AC influence firm performance. The research purpose is therefore threefold. Specifically, the study is to explore the impact of FCF on AC, to re-examine the free cash flow hypothesis, and to test the agency theory based on the empirical data from Taiwan publicly-listed companies. The study use...

This study investigates empirically the value investors place in excess cash holdingand how managerial ability impact on the value of cash holding for Iranianfirms from 2006 to 2014. In this research, managerial ability calculated by usingthe data envelopment analysis (DEA). Following the approach of Faulkender andWang, we find that the relation between managerial ability and value of cash hold...

Diversified firms can trade at a discount to a matched portfolio of single-segment firms either because diversified firms have lower expected cash flows or because they have higher expected returns. We analyze whether diversification-discount firms have higher expected returns in order to compensate investors for offering less upside potential (or skewness exposure) than focused firms. Our empi...

Tidak diragukan lagi, setiap investor ingin melihat laba atas investasi mereka, dan idealnya, itu akan konsisten tidak berubah-ubah. Perusahaan dapat memotivasi pemegang saham untuk berinvestasi kembali dalam bisnis dengan mengubah kebijakan dividen, yang berdampak pada pertumbuhan profitabilitas perusahaan. Rasio terhadap arus kas bebas merupakan indikator utama kesehatan keuangan Peneliti ter...

The features are investigated, systematized, and reserves for improving the process of calculating analyzing free cash flow identified. sources information have been clarified, a new indicator assessing effectiveness management – economic return on assets - has recommended