IDE et retards d'investissement de l'entreprise domestique au Sénégal : une solution par la gouvernance d'entreprise
[FDI and Senegalese domestic firms investment delays : a corporate governance solution]
AbstractThis paper focuses on agency theory to explain investment behavior difference between private domestic and foreign in Senegalese industry. We put domestic companies into two groups with regard to managerial ownership and institutional ownership. An augmented accelerator model with demand uncertainty is used for that purpose. Empirical checkings have been performed using in panel of 187 firms. The results reveal that investment sensibility to uncertainty, sales and free cash flow is higher in foreign firms. Considering the efforts made by these firms in developing countries to meet international standards, our second area of research proposes managerial ownership to mitigate investment delays of domestic firms. It is showed that domestic firms can benefit from a high sensibility to uncertainty, be less financially constrained and less subject to underinvestment (due to manager extraction funds). A reduction of behavioral delays could be reached via optimal managerial ownership (within 5%-25%); none institutional ownership also improve domestic firms investment.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 7761.
Date of creation: 30 Jan 2008
Date of revision:
Firm investment; Ownership structure; Agency costs; Managerial ownership; Panel; Senegal;
Find related papers by JEL classification:
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-25 (All new papers)
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