The relationship between firms' free cash flow and investment: an empirical study on Malaysian public listed companies
This study examines the relationship between firms' investment, as dependent variable, and the respective free cash flow, as the independent variable. The study on the relationship has also been extended further to include other independent variables such as firms' debt ratio, size (a m...
Saved in:
| Main Author: | |
|---|---|
| Format: | Thesis |
| Language: | English |
| Published: |
2011
|
| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/9055/2/Wera%28fulltext%29.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This study examines the relationship between firms' investment, as dependent variable, and
the respective free cash flow, as the independent variable. The study on the relationship has
also been extended further to include other independent variables such as firms' debt ratio,
size (a measure of the total asset value), dividend payout, agency problem, Tobin's Q (a
measure of the share market value) and cash account uses. The sample used comprises of 110
non-financial companies listed on the Bursa MalaYSia) It was found that there is a
significantly negative relationship between firms' investment and the respective free cash
flow. Also, higher partially significant relationship has been found between firms' investment
and dividend payout and debt ratio negatively and positively with Tobin's Q. While lower
partially significant relationship was found between firms' investment and frrms' size and
cash account uses negatively and positively with agency problem. |
|---|