scholarly journals The Effect of Number of Members, Internal and External Capital, and Turnover Towards the Surplus in Primary Cooperative at Regancy of Agam

2020 ◽  
Author(s):  
Hendra Sukmana ◽  
Yunia Wardi ◽  
Marwan
Keyword(s):  
External Capital

Does Financial Reporting Conservatism Mitigate Underinvestment?

2017 ◽  
Vol 34 (2) ◽  
pp. 258-283 ◽  
Author(s):  
Hyun A. Hong ◽  
Yongtae Kim ◽  
Gerald J. Lobo
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Negative Relation ◽  
Investment Projects ◽  
External Capital ◽  
Cash Flow Volatility

This study examines the role of financial reporting conservatism in mitigating underinvestment problems. Recognizing that volatile cash flows increase the need to access external capital markets and that agency conflicts and information asymmetry make external capital costlier than internal capital, which leads managers to forgo valuable investment projects, Minton and Schrand document a negative relation between cash flow volatility and investment. We draw on Minton and Schrand’s framework to isolate underinvestment problems and hypothesize and document that conservatism mitigates the negative relation between cash flow volatility and investment and that this mitigative effect is more pronounced for firms with ex ante more severe agency conflicts. We also document that conservatism mitigates the sensitivity of investment to cash flow volatility by facilitating access to external capital.

scholarly journals Internal versus External Capital Markets

10.3386/w4776 ◽  
1994 ◽  
Author(s):  
Robert Gertner ◽  
David Scharfstein ◽  
Jeremy Stein
Keyword(s):  
Capital Markets ◽  
External Capital

Foreign Direct Investment

2017 ◽  
pp. 239-257
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Foreign Direct Investment ◽  
Absorptive Capacity ◽  
Direct Investment ◽  
Global Economy ◽  
Spillover Effects ◽  
Advanced Technology ◽  
Foreign Investor ◽  
The World ◽  
External Capital ◽  
Management Techniques

This chapter indicates the overview of Foreign Direct Investment (FDI); FDI entries and export; FDI and spillover effects; FDI, human capital, and absorptive capacity; and the significance of FDI in the global economy. FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. FDI offers a source of external capital and increased revenue. FDI can be a tremendous source of external capital for the developing countries, which can lead to economic development. Through FDI, capital goes to whatever businesses have the economic growth anywhere in the world. FDI helps in increasing the output through the utilization of advanced technology and management techniques. FDI benefits investors, businesses, and the global economy. FDI contributes to foreign exchange earnings, employment creation, and the increases in incomes in the global economy.

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