Amoah Benjamin
Department of Finance, University of Ghana Business School, Accra, Ghana.
Heliyon. 2022 Aug 16;8(8):e10281. doi: 10.1016/j.heliyon.2022.e10281. eCollection 2022 Aug.
Firms commit huge funds into investment in order to maintain their operational capacity, going concern, and to maximize shareholder value. This action in many instances defines the success of the firm. The question is, How do efficiency and free cash flow associate with firm investment? This paper employs fixed and random effects to answer how technical efficiency estimates using the Data Envelopment Analysis technique and free cash flow influence firm investment. The data was sourced from published annual reports of sampled listed companies. The findings are that technically efficient firms tend to decrease firm investment. Free cash flow to the firm matters in the case of depreciation and amortization for firms. There exists a direct relationship between big size firms and firm investment. Increasing inflation and a depreciating domestic currency do not induce firm investment. The study recommends that inefficient firms must reduce their input mix to match the given level of output if they are to create value for shareholders through reduced firm investment. This article links technical efficiency to firm investment and depreciation and amortization of listed banks and manufacturing firms and is the first of its kind on Ghana.
企业投入巨额资金进行投资，以维持其运营能力、持续经营能力，并使股东价值最大化。在许多情况下，这一行动决定了企业的成功。问题是，效率和自由现金流与企业投资是如何关联的？本文采用固定效应和随机效应来回答使用数据包络分析技术的技术效率估计和自由现金流如何影响企业投资。数据来源于抽样上市公司公布的年度报告。研究结果表明，技术效率高的企业往往会减少企业投资。对于企业来说，在折旧和摊销方面，企业自由现金流很重要。大型企业与企业投资之间存在直接关系。通货膨胀加剧和本币贬值不会促使企业投资。该研究建议，如果低效企业要通过减少企业投资为股东创造价值，就必须减少其投入组合以匹配给定的产出水平。本文将技术效率与上市银行和制造企业的企业投资以及折旧和摊销联系起来，这在加纳尚属首次。
