Proceedings of the Second International Conference On Economic and Business Management (FEBM 2017)

The effect of corporate geographic location on over-investment

Authors
Xintong Shi, Wenbin Bao
Corresponding Author
Xintong Shi
Available Online October 2017.
DOI
https://doi.org/10.2991/febm-17.2017.141How to use a DOI?
Keywords
geographic location; over-investment; Institutional investors; information asymmetry; agency problem
Abstract
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.
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Proceedings
Second International Conference On Economic and Business Management (FEBM 2017)
Part of series
Advances in Economics, Business and Management Research
Publication Date
October 2017
ISBN
978-94-6252-423-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/febm-17.2017.141How to use a DOI?
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  -