Paper
Corporate Governance Executives Characteristics and Over-Investment—— Based on China Listed SMEs’ Panel Data Analysis
- Authors:
- Jianxin Cao; Erni Huang
- Abstract
- In this paper, we use the non-financial industries of small and medium-sized enterprises of Shenzhen exchanges listed companies during 2006-2010 as a sample, inspecting company governance free cash flow, which is leading to excessive investment or not. Further inspect if management company executives characteristics can inhibit excessive investment behavior. Empirically based on Richardson (2006)’s expected investment model, using panel data method. The results found that free cash flow is positively related to over-investment; over-investment level and the percentage of independent directors, remuneration of board of directors, the percentage of women executives are in significant negative correlation; remuneration of top three executive, independent directors allowances, master’s or higher degree of directors and senior management personnel have significant positively correlation to over- investment.
- Keywords
- Executives Characteristics, Excessive Investment, Free Cash Flow
- StartPage
- 52
- EndPage
- 55
- Doi