Journal article
Investment opportunities and leverage: some Australian evidence on the role of board monitoring and director equity ownership
Managerial Finance, Vol.28(3), pp.19-36
2002
Abstract
Refers to previous research on investment opportunity sets, financing policies, board monitoring and directors shareholdings and the proportion of nonexecutive directors NEDs on the board on the negative relationship between investment opportunities and leverage. Tests them on 1998 data from 437 top Australian companies, explains the methodology and presents the results, which suggest that the negative relationship i.e. asset substitution or underinvestment decreases with higher levels of executive director shareholdings or higher proportions of NEDs and that underinvestment is greatest for firms with low management share ownership. Recognizes the limitations of the study and suggests some avenues for further research.
Details
- Title
- Investment opportunities and leverage: some Australian evidence on the role of board monitoring and director equity ownership
- Authors
- Marion Hutchinson (Corresponding Author) - Deakin UniversityFerdinand A. Gul (Author) - City University of Hong Kong
- Publication details
- Managerial Finance, Vol.28(3), pp.19-36
- Publisher
- Emerald Publishing Limited
- DOI
- 10.1108/03074350210767717
- ISSN
- 1758-7743
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99678894102621
- Output Type
- Journal article
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