Research on Institutional Investors, Free Cash Flow And Idle Funds

DOI

10.2991/icessms-16.2017.11How to use a DOI?

Keywords

Institutional Investors; Free Cash Flow; Idle Funds.

Abstract

Idle funds show the agency costs of free cash flow. From the perspective of "Institutional Shareholder Activism", this paper studies the question of idle funds by analyzing idle funds raised by listed companies in Shanghai and Shenzhen stock markets from the year 2009 to 2014. The empirical results show that free cash flow and idle funds are positively related. Institutional investors can supervise idle funds; but they are more concerned about the use efficiency of idle funds, rather than the question of idle funds. Therefore, under normal circumstances, institutional investors acquiesce to the existence of idle funds in free cash flow.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yong Liang
AU  - Shengdao Gan
PY  - 2017/02
DA  - 2017/02
TI  - Research on Institutional Investors, Free Cash Flow And Idle Funds
BT  - Proceedings of the 2016 2nd International Conference on Education, Social Science, Management and Sports (ICESSMS 2016)
PB  - Atlantis Press
SP  - 42
EP  - 49
SN  - 2352-5398
UR  - https://doi.org/10.2991/icessms-16.2017.11
DO  - 10.2991/icessms-16.2017.11
ID  - Liang2017/02
ER  -