Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/springer_journal/investment-opportunities-free-cash-flow-and-stock-valuation-effects-of-H0Ra0PzU0s
References (41)
-
Larry Lang, Ralph Walkling, René Stulz (1991)
A Test of the Free Cash Flow Hypothesis: The Case of Bidder ReturnsIO: Empirical Studies of Firms & Markets eJournal
-
R. Morck, Bernard Yeung (1992)
Internalization : An event study testJournal of International Economics, 33
-
S. Rhee, Rosita Chang (1990)
Pacific-basin capital markets research -
L. H. P. Lang, E. Ofek (1995)
Why Do Firms Invest in Eastern Europe?European Financial Management, 1
-
L. Blose, Joseph Shieh (1997)
Tobin's q-Ratio and Market Reaction to Capital Investment AnnouncementsThe Financial Review, 32
-
Michael Jensen (1986)
Agency Cost of Free Cash Flow, Corporate Finance, and TakeoversIndustrial Organization & Regulation eJournal
-
J. K. Kang, R. M. Stulz (1996)
How Different Is Japanese Corporate Finance? An Investigation of the Information Content of New Security IssuesReview of Financial Studies, 9
-
Clifford Smith, R. Watts (1992)
The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation PoliciesJournal of Financial Economics, 32
-
Sheng-Syan Chen, K. Ho, Cheng-Few Lee, Gillian Yeo (2000)
Investment opportunities, free cash flow and market reaction to international joint venturesJournal of Banking and Finance, 24
-
Cheol Eun, R. Kolodny, C. Scheraga (1996)
Cross-border acquisitions and shareholder wealth: Tests of the synergy and internalization hypothesesJournal of Banking and Finance, 20
-
Larry Lang, Ralph Walkling, René Stulz (1989)
Managerial Performance, Tobin's Q, and the Gains from Successful Tender OffersCorporate Finance: Governance
-
Keith Howe, Jia He, G. Kao (1992)
One‐Time Cash Flow Announcements and Free Cash‐Flow Theory: Share Repurchases and Special DividendsJournal of Finance, 47
-
M. C. Jensen (1986)
Agency Costs of Free Cash Flow, Corporate Finance, and TakeoversAmerican Economic Review, 76
-
David Denis (1994)
Investment Opportunities and the Market Reaction to Equity OfferingsJournal of Financial and Quantitative Analysis, 29
-
E. Jackson, K. Cohen, R. Cyert (1966)
Theory of the FirmSouthern Economic Journal, 32
-
Jun-Koo Kang, René Stulz (1994)
How Different is Japanese Corporate Finance? An Investigation of the Information Content of New Security IssuesNBER Working Paper Series
-
Su Chan, John Martin, John Kensinger (1990)
Corporate research and development expenditures and share valueJournal of Financial Economics, 26
-
K. Lehn, A. Poulsen (1989)
Free Cash Flow and Stockholder Gains in Going Private TransactionsJournal of Finance, 44
-
John Doukas, N. Travlos (1988)
The Effect of Corporate Multinationalism on Shareholders' Wealth: Evidence from International AcquisitionsJournal of Finance, 43
-
Peter Dodd, Jerold Warner (1983)
On corporate governance: A study of proxy contestsJournal of Financial Economics, 11
-
M. Hertzel, Richard Smith (1993)
Market Discounts and Shareholder Gains for Placing Equity PrivatelyJournal of Finance, 48
-
Anup Agrawal, C. Knoeber (1995)
Firm Performance and Mechanisms to Control Agency Problems between Managers and ShareholdersJournal of Financial and Quantitative Analysis, 31
-
Michael Jensen, W. Meckling (1976)
Theory of the Firm -
Michael Barclay, R. Litzenberger (1988)
Announcement effects of new equity issues and the use of intraday price dataJournal of Financial Economics, 21
-
Kee Chung, P. Wright, C. Charoenwong (1998)
Investment opportunities and market reaction to capital expenditure decisionsJournal of Banking and Finance, 22
-
L. H. P. Lang, R.M. Stulz, R. A. Walkling (1989)
Managerial Performance, Tobin's Q, and the Gains from Successful Tender OffersJournal of Financial Economics, 24
-
C. Holderness, R. Kroszner, D. Sheehan (1998)
Were the Good Old Days that Good? Changes in Managerial Stock Ownership Since the Great DepressionCorporate Finance: Governance
-
R. Pettway, Neil Sicherman, D. Spiess (1993)
Japanese Foreign Direct Investment: Wealth Effects From Purchases and Sales of U.S. AssetsFinancial Management, 22
-
Michael Barclay, Clifford Smith (1995)
The Maturity Structure of Corporate DebtJournal of Finance, 50
-
Michael Barclay, Clifford Smith (1995)
The Priority Structure of Corporate LiabilitiesJournal of Finance, 50
-
Sheng-Syan Chen, K. Ho (1997)
Market Response to Product-Strategy and Capital-Expenditure Announcements in Singapore: Investment Opportunities and Free Cash FlowFinancial Management, 26
-
C. G. Holderness, R. S. Kroszner, D. P. Sheehan (1999)
Were the Good Old Days That Good? Changes in Managerial Stock Ownership Since the Great DepressionJournal of Finance, 54
-
Zaher Zantout, George Tsetsekos (1994)
THE WEALTH EFFECTS OF ANNOUNCEMENTS OF R&D EXPENDITURE INCREASESJournal of Financial Research, 17
-
John Doukas (1995)
Overinvestment, Tobin's q and gains from foreign acquisitionsJournal of Banking and Finance, 19
-
Steven Perfect, Kenneth Wiles (1994)
Alternative constructions of Tobin's q: An empirical comparisonJournal of Empirical Finance, 1
-
Samuel Szewczyk, George Tsetsekos, Zaher Zantout (1996)
The Valuation of Corporate R&D Expenditures: Evidence from Investment Opportunities and Free Cash FlowFinancial Management, 25
-
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
-
Larry Lang, R. Litzenberger (1989)
Dividend announcements: Cash flow signalling vs. free cash flow hypothesis?Journal of Financial Economics, 24
-
M. C. Jensen, W. H. Meckling (1976)
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership StructureJournal of Financial Economics, 3
-
A. Waheed, I. Mathur (1995)
Wealth effects of foreign expansion by U.S. banksJournal of Banking and Finance, 19
-
Stephen Vogt (1994)
The Cash Flow/investment Relationship: Evidence from U.S. Manufacturing FirmsFinancial Management, 23
- Publisher
- Springer Journals
- Copyright
- Copyright © 2001 by Kluwer Academic Publishers
- Subject
- Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
- ISSN
- 0924-865X
- eISSN
- 1573-7179
- DOI
- 10.1023/A:1011270824166
- Publisher site
- See Article on Publisher Site
Abstract
This paper examines the importance of investment opportunities and free cash flow in assessing the stock market reaction to announcements of cross-border investments in China by Taiwanese firms. Our results support the investment opportunities hypothesis that Taiwanese firms with favorable investment opportunities have significantly positive response to the announcements of their investments in China whereas firms with poor investment opportunities have negative response to such announcements. In contrast, we find no support for the free cash flow hypothesis. Our findings add to the understanding of the determinants of the wealth effect of cross-border investment decisions in the Asia-Pacific region.
Journal
Review of Quantitative Finance and Accounting – Springer Journals
Published: Oct 3, 2004