Impact of Long-term Debt on Overinvestment Problem of Agency

Subject Areas : Financial Mathematics

Azade Shahab ¹ , Mohammad Mohammad Zaheri ² , Nahid Asadi ³

1 - Department of Econommic Development and Planning, Bu-Ali Sina University, Hamedan, Iran
2 - Department of Management, Lorestan University, Khoram Abad, Iran
3 - Department of Management, Khomein Branch, Islamic Azad University, Khomein, Iran.

Received: 2017-07-04 Accepted : 2017-12-01 Published : 2017-12-01

Keywords:

References:

[1] Savaedi, Z., Ahmadi, M. R., Investigating the Impact of overinvestment and underinvestment on return on assets (ROA) index of Tehran Stock of listed Companies, National Conference on New Achievements in Accounting and Management, 2015.

[2] Tehrani R., Hassar Zadeh R., The effect of free cash flows and restrictions on financing on over-investment and under-investment, Journal of Accounting Studies, 2009, 1, P.50-67.

[3] Khardyar S., Askari A., financial reporting quality and investment efficiency, The First National Economy Conference, 2014.

[4] Sadeghzadeh A., Bigger Impact of Investing on Investors' Response to the Custody Cost of the Cash, The First International Conference on the New Paradigms of Business and Organizational and smart Management, 2016.

[5] Ghadamyari N., Eftekhari F., Khorasan, Relationship between Capital Structure and Over-Investment, Third International Conference on Modern Research in Management, Economics and Accounting, 2015.

[6] Hasani, M., Meysami, M., Impact of Maturity of Debt and Financial Reporting Quality on Under-Investment and Over-Investment, Seventh International Conference on Economics and Management, 2016.

[7] Pakiseh, K., Bashiri Joybari, M., Impact of False Valuation on Investment Decisions of Companies listed in Tehran Stoke Exchange, Journal of Financing and assets Management, 2016, 1(3), P.14-23.

[8] Moradi, J., Rahmanian, A., Long-term and Over-investment in cash and investment costs in terms of agency theory, Quarterly Journal of Empirical Financial Accounting, 2013, 40, P.2-12.

[9] Valipour, H., Khorram, A., Effectiveness of the Company's Guiding System Mechanisms to Reduce the Cost of Agency, Journal of Management Accounting, 2011, 8, P. 23-45.

[10] Arab Mazar-e-Yasdi, M., Baghomian, R. K., Hakhani, F., Relationship between Debt-Assets Combinations and Liquidity Risk of Banks in Iran, Faculty of Humanities, 2008.

[11] Ferrer R., Vicente J., Benítez, R., Interest rate changes and stock returns: A European multi-country study with wavelets, International Review of Economics & Finance, 2016, 4, P.1-12.

[12] Richardson, S., Over-investment of free cash flow, Review of Accounting Studies, 2006, 11, P.159-189.

[13] Chen, SH., Wang, K., Li., Xiaoxue, Product Market Competition; Ultimate Controlling Structure and Related Party Transactions, China, Journal of Accounting Research, 2012, 5, P. 293-306.

[14] Huang, W., Jiang F., Liu, Z., Zhang M., Agency cost, top executives' overconfidence, and investment-cash flow sensitivity — Evidence from listed companies in China, Pacific-Basin Finance Journal, 2011, 19, P. 261-277.

[15] D Mello, R., Miranda, M., long term debt and over investment agency problem, 2009.

[16] Guariglia, A., Yang, J., A balancing act: Managing financial constraints and agency costs to minimize investment inefficiency in the Chinese market, Journal of Corporate Finance, 2016, 36, P.111-130.

[17] Li, Concerning the financing of the debt and corporate investment behavior, Journal of Mathematical Economics, 2010, 46(5) P.633-651.