Institutional investors’ site visits and investment-cash flow sensitivity: Mitigating financing constraints or inhibiting agent conflicts?
Jia Liao,
Yun Zhan,
Yu Yuan
Abstract:Taking Chinese non-financial A-share companies listed on the Shenzhen Stock Exchange (SZSE) between 2003 and 2018 as a sample, this paper empirically examines whether and how institutional investors’ site visits (SVs) affect corporate investment-cash flow sensitivity (ICFS). The results show that institutional investors’ SVs can reduce ICFS, and this effect is more obvious for companies with fewer investment opportunities, larger sizes, higher internal cash flows, and higher agency costs, indicating that insti… Show more
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