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Found 3 essays matching the above criteria.

  1. 1. Investment-Cash Flow Sensitivity for Swedish Firms

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Victor Abrahamsson; Sofia Knobel; [2016]
    Keywords : Overinvestment; Underinvestment; Free Cash Flow; Agency Cost Theory; Financing Constraints;

    Abstract : The aim of this bachelor thesis is to determine whether there exists a relationship between a firm's level of overinvestment or underinvestment and its level of positive free cash flow or negative free cash flow respectively. We collect data from 165 Swedish firms listed on OMX Stockholm Stock Exchange between 2008-2014. READ MORE

  3. 2. Cash Holdings from a Risk Management Perspective - A study on high investment firms

    University essay from Lunds universitet/Företagsekonomiska institutionen

    Author : Fanny Andrea Bjørndalen; Johanna Nilsson; [2015]
    Keywords : Cash Management; Cash Holdings; Hedging; Risk Management; Underinvestment problems; Investment opportunities; Business and Economics;

    Abstract : Due to a globalized market place, risk management has grown in importance and become a central part of firms’ corporate strategies. The incentives for engaging in risk reducing activities revolve around reduced agency costs and exploitation of financial advantages. READ MORE

  4. 3. Trouble in Private Equity Paradise: Who Benefits When a Portfolio Company Invests?

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Anders Berger; Marcus Uggla; [2008]
    Keywords : private equity; leverage buyout; LBO; capital budgeting;

    Abstract : Problems arise when a private equity owned portfolio company wants to make an additional investment in assets and the private equity company has to make an investment decision based on capital budgeting models presented by the management of the portfolio company. Since a private equity firm evaluates their holdings using LBO valuation models with the resulting IRR and their portfolio company evaluates investments using various budgeting methods, the purpose of this Master’s Thesis is to analyze whether such an additional investment could in some cases be value improving for only one of the parties, and if that is the case, when that is most likely to occur. READ MORE