The effect of corporate geographic location on over-investment
Xintong Shi, Wenbin Bao
Available Online October 2017.
- https://doi.org/10.2991/febm-17.2017.141How to use a DOI?
- geographic location; over-investment; Institutional investors; information asymmetry; agency problem
- This paper aims to shed light on the effect of a firm's geographic location on its over-investment by using different location variables based on a sample of 1936 Chinese listed firms spanning from 2007 to 2016. We find that remotely located firms have higher level of over-investment. Remotely located firms with more free cash flow face severer over-investment problem. In further research, we examine whether institutional investors can mitigate remote firms' over-investment. However, we find that institutional investors have no governance effect on remote firms' over-investment.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Xintong Shi AU - Wenbin Bao PY - 2017/10 DA - 2017/10 TI - The effect of corporate geographic location on over-investment BT - Second International Conference On Economic and Business Management (FEBM 2017) PB - Atlantis Press SN - 2352-5428 UR - https://doi.org/10.2991/febm-17.2017.141 DO - https://doi.org/10.2991/febm-17.2017.141 ID - Shi2017/10 ER -