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Equity Concentration and Capital Investment Efficiency of Companies in the Republic of Congo

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  • Mourou Roscelin Serge Carrel

Abstract

This paper is based on the research samples of Congolese companies on the stock exchanges from 2004 to 2011. It directly measures the efficiency of capital investment by using investment-internal cash flow sensitivity, and uses the multilinear regression model to study the impact of corporate governance issues such as board independence, equity concentration and executive shareholding on capital investment efficiency. The results show that- Ownership concentration cannot effectively reduce the investment in Congolese companies - internal cash flow sensitivity. The concentration of ownership can reduce agency conflicts arising from investments - internal cash flow sensitivity.

Suggested Citation

  • Mourou Roscelin Serge Carrel, 2021. "Equity Concentration and Capital Investment Efficiency of Companies in the Republic of Congo," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(1), pages 131-131, January.
    • Handle: RePEc:ibn:ijefaa:v:13:y:2021:i:1:p:131
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    References listed on IDEAS

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    1. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    2. Heitor V. Almeida & Daniel Wolfenzon, 2006. "A Theory of Pyramidal Ownership and Family Business Groups," Journal of Finance, American Finance Association, vol. 61(6), pages 2637-2680, December.
    3. Gilles Hilary & Gary C. Biddle, 2006. "Accounting Quality and Firm-Level Capital Investment," Post-Print hal-00481720, HAL.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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