Journal ArticleDOI
Alternative Models of Managerial Behavior: Empirical Tests for the Petroleum Industry
Badi H. Baltagi,James M. Griffin +1 more
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In this article, the authors used panel data for a set of petroleum firms to test two competing hypotheses about managerial inefficiency, the heterogeneous managerial model versus the free cash flow variant of agency theory.Abstract:
Explanations for takeovers often focus on managerial inefficiency as an explanation. This paper utilizes panel data for a set of petroleum firms to test two competing hypotheses about managerial inefficiency--the heterogeneous managerial model versus the free cash flow variant of agency theory. By focusing on specific investment categories like exploration, bidding and leasing activity, and R$50D, the effects of changes in management and cash flow are better isolated. The empirical results provide considerable support for the free cash flow variant of agency theory showing that reduced cash flow due to restructuring will curtail investments in exploration, bidding and leasing activity, and R$50D. Copyright 1989 by MIT Press.read more
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Ownership, control, financial structure and the performance of firms
TL;DR: In this article, the authors review and critically evaluate the literature that empirically analyses the effects of ownership and control structures on both the financial structure and the performance of the firm, and further consideration is given to the dynamic relationships between ownership, control, financing and firm performance.
DissertationDOI
Discrecionalidad directiva, costes de agencia y mecanismos de control en las ofertas públicas de adquisición de acciones en España
Fortuna Lindo,José María +1 more
TL;DR: In this article, a modelo de probabilidad mediante regresion logistica is used to estimate a perfil caracteristico of sociedades objetivo de toma de control.
Journal ArticleDOI
Increasingly Marginal Utilities: Diversification and Free Cash Flow in Newly Privatized UK Utilities
TL;DR: In this article, the authors explore aspects of the life cycle/free cash-flow hypothesis of Dennis Mueller and Michael Jensen and find substantial and robust support for the maintained hypothesis that (lagged) cash flow drove diversification.
Journal ArticleDOI
Takeovers: Managerial Incompetence or Managerial Shirking?
TL;DR: In this article, the authors formalized Jensen's free cash flow variant of agency theory by constructing a simple two-period game which captures the distinctive empirical implications of the two theories.
Journal ArticleDOI
Der Einfluss von Corporate Governance auf die Determinanten und Effekte von Investitionen
TL;DR: In this paper, the authors find empirische Unterstutzung in Unter-Stichproben von Firmen. But, the empirische Evidenz uber the Schatzung von Investitionsrenditen is ebenfalls konsistent with der Aussage, dass manche Firmen unterinvestieren (mussen), wahrend and other uber investieren.
References
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Journal ArticleDOI
Large Shareholders and Corporate Control
Andrei Shleifer,Robert W. Vishny +1 more
TL;DR: In this article, the authors explore a model in which the presence of a large minority shareholder provides a partial solution to the free-rider problem in a corporation with many small owners, where the corporation may not pay any one of them to monitor the performance of the management.
Journal ArticleDOI
Elements of Econometrics.
Ian Domowitz,Jan Kmenta +1 more
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Book
Elements of econometrics
TL;DR: The emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus, and Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases.
Journal ArticleDOI
Takeover Bids, The Free-Rider Problem, and the Theory of the Corporation
Oliver Hart,Sanford J. Grossman +1 more
TL;DR: In this paper, the authors study privately and socially optimal corporate charters under the alternative assumptions of competition and monopoly in the market for corporate control, and analyze exclusionary devices that can be built into the corporate charter to overcome this free-rider problem.