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dc.contributor.advisorBhabra, Gurmeet
dc.contributor.authorFea, McGregor Duncan
dc.date.available2014-09-24T00:02:29Z
dc.date.copyright2014
dc.identifier.citationFea, M. D. (2014). Explaining the Cash Flow Sensitivity of Investment in Australian Firms (Thesis, Master of Business). University of Otago. Retrieved from http://hdl.handle.net/10523/4994en
dc.identifier.urihttp://hdl.handle.net/10523/4994
dc.description.abstractI investigate the primary determinants of the cash flow sensitivity of investment (CFSI) in Australian firms. My findings fail to support either of the two hypotheses which have previously dominated the literature — the asymmetric information hypothesis and the free cash flow hypothesis — indicating instead that there are multiple determining impacts culminating to create CFSI. I find that governance does not play a significant role in the determination of CFSI. I also offer an explanation for the earlier variations in findings across much of the existing literature, including financial distress driving the low CFSI of constrained firms; sales growth enhancing CFSI; high-asset firms reporting high CFSI; and financial constraint providing only a part of the explanation of CFSI. Ultimately, I find that CFSI is not a by-product of undesirable firm performance as previously thought, but in fact the outcome of an ability to utilise preferred internal financing for investments.
dc.language.isoen
dc.publisherUniversity of Otago
dc.rightsAll items in OUR Archive are provided for private study and research purposes and are protected by copyright with all rights reserved unless otherwise indicated.
dc.subjectCash
dc.subjectFlow
dc.subjectSensitivity
dc.subjectInvestment
dc.subjectAustralia
dc.subjectPolicy
dc.subjectFree
dc.subjectAsymmetric
dc.subjectInformation
dc.subjectAgency
dc.subjectCosts
dc.subjectFinancial
dc.subjectDistress
dc.subjectSales
dc.subjectGrowth
dc.subjectIndustry
dc.subjectMining
dc.subjectConstraint
dc.subjectPayout
dc.subjectSize
dc.subjectCleary
dc.subjectCorporate
dc.subjectGovernance
dc.subjectTobin
dc.subjectQ
dc.subjectIndex
dc.subjectCapital
dc.subjectStructure
dc.titleExplaining the Cash Flow Sensitivity of Investment in Australian Firms
dc.typeThesis
dc.date.updated2014-09-23T23:53:34Z
dc.language.rfc3066en
thesis.degree.disciplineFinance
thesis.degree.nameMaster of Business
thesis.degree.grantorUniversity of Otago
thesis.degree.levelMasters
otago.interloanno
otago.openaccessAbstract Only
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