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
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
Recommended Citation
Ang, C. Y., Posio, J. P., Santos, M. A., & Villaverde, A. T. (2008). 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. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18472