Der Einfluss von Corporate Governance auf die Determinanten und Effekte von Investitionen

This survey concludes that corporate governance has an effect on the investment(I) - cash flow (CF) sensitivity and thus on rates of return on investment.
Both theories explaining positive I-CF sensitivities - the asymmetric information theory (AIT) and the managerial discretion theory (MDT) - are empirically validated in sub-samples of firms. The AIT appears more likely for young, small and family-controlled firms. Relations between banks and firms reduce financial constraints. Important determinants of I-CF sensitivity also include the legal system,the quality of accounting standards as well as the firms ownership structure. Empirical estimates of rates of return on investment are also consistent with the notion that some firms (must) under-invest, while other firms over-invest.