The relationship between fixed asset investments and cash flows of the firms listed in the Philippine Stock Exchange index (PSEi) excluding financial firms from years 2005-2009

Date of Publication

2008

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Leila Calderon Kabigting

Defense Panel Chair

Rene B. Betita

Defense Panel Member

Robert Dan Roces
Ciara Alathea Sapalaran

Abstract/Summary

Through the fast-paced evolution of technology and globalization, new innovative ideas are becoming available to the market. Of course, financial market imperfections are of existence. Agency costs and asymmetric information are some of the examples. Both of these can probably lead to overinvestment, hence, investment inefficiency.

The proponents eliminated information asymmetry through firm size leaving the effect only of agency problem. The study found that the overinvestment reduction tools: dividends, leverage, and debt maturity are effective for alleviating the dependence of investments on cash flows. It also found that the overinvestment is alleviated in both the alignment and entrenchment effect level.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21822

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

58, [11] leaves

Keywords

Investments--Philippines; Corporations--Finance; Cash flow--Philippines

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