| Summary: | 碩士 === 國立中央大學 === 企業管理研究所 === 94 === This paper examines the effect of financial constraints, ownership structure, characteristics of board of directors, and CEO overconfidence on the sensitivities of cash flows to investment. The sample period is from 1999 to 2004, and the sample consists of 2622 observations for 437 companies listed on the Taiwan Stock Exchange (TSE). The Panel data analysis and Bond and Meghir (1994) dynamic investment models are estimated by Generalized Methods of Moments (GMM) in this study. The empirical evidence shows that firstly as the level of institutional ownership, the size of board of directors, and the level of external directors increase or the chairman is also the CEO, the sensitivities of cash flows to investment significantly decrease. Then, companies facing financial constraints, higher insider ownership levels, and CEO overconfidence have significantly higher sensitivity of cash flows to investment. Finally, there is little evidence showing that the level of blockholder ownership has a significant impact on the sensitivity of cash flows to investment.
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