The effect of corporate geographic location on over-investment

DOI

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.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the Second International Conference On Economic and Business Management (FEBM 2017)
PB  - Atlantis Press
SP  - 1054
EP  - 1059
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-17.2017.141
DO  - 10.2991/febm-17.2017.141
ID  - Shi2017/10
ER  -