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

  •  Mourou Roscelin Serge Carrel    


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.

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