Economic Freedom, Investment Flexibility, and Equity Value: A Cross-Country Study

• Main Authors: CHEN, Chih-Ying, CHEN, Peter F., JIN, Qinglu
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2015
• 主題: economic freedom; investment flexibility; real options; equity value; Accounting; Corporate Finance; International Business
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/1377; https://ink.library.smu.edu.sg/context/soa_research/article/2376/viewcontent/EconomicFreedomInvestmentFlexibilityEquityValue_2015.pdf

Prior studies show that equity value has convex relations with earnings and book value of equity, respectively, due to growth and adaptation options (Burgstahler and Dichev 1997a; Zhang 2000). These studies, however, do not consider the role of institutions in affecting firms' ability to exerci...