기업지배구조와 경영자의 투자성향간의 관계분석 : 기업지배구조지수(CGI)를 사용한 분석

This study empirically examines the influence of corporate governance ratings upon managerial investment propensity. Findings are as follows. First, corporate governance ratings have significant negative effects on both the raw and absolute value of yearly corporate capital expenditures. This finding implies that good corporate governance effectively restricts managerial propensity of overinvestment, suggesting that good corporate governance reduces agency problem which stems on information asymmetry between managers and outside shareholders. Consistent with the findings of previous studies, analysis also documents that free cash flows have negative impact on corporate capital expenditures, suggesting that free cash flows are not normally utilized to build manager's empire building. Lastly, leverage working together with free cash flows reduces corporate capital expenditures.