| Summary: | 碩士 === 朝陽科技大學 === 財務金融系碩士班 === 100 === This paper applies Free Cash Flow and Information Asymmetry Hypotheses to investigate whether managers pursuit their private benefits by using capital investment expenditure (hereafter CI) increases or not, and explore whether managers drecrease CI as asymmetric information in order to pay more dividends. Cnsequently, the present study investigate the effect of CI increases on abnormal stock returns of Taiwanese listed firms. The empirical results show that full samples with the whole study period and the financial crisis period, regardless of the three-factor model, four-factor model or panel data approach, the effects of increase in CI on stocks returns is positive, and the CI-spread is negative. This reveals that samples are in favor of the hypothesis of asymmetric information. However, the electronics industry in the entire study period and the financial crisis period, the expenditure of low CI tends to be free cash flow hypothesis, that of high CI are more in favor of the hypothesis of asymmetric information.
|
|---|
