THE DETERMINANTS OF OPTIMAL INVESTMENT LEVEL (OPT) FOR THE FIRM VALUE: RIVIEW OF THE LITERATURE

Suzana Ab Rahman, Shafinar Ismail

Abstract


The inaccuracy of imperfection financial market information will contribute to reduce the firm level of investment towards the expected return on investment returns. Furthermore, this issue will adversely affect investors and financial management companies who are facing difficulties in obtaining external funds to finance investment opportunities and investment decisions that do not reach the maximum level of corporate value. Hence, this paper is to highlight the problems and factors that influence the company's management in determining the optimum level of investment in the company. Several secondary sources have been used to strengthen the study framework that can be used for further research.

 

Keywords: The optimal investment level (OPT), Underinvestment, Overinvestment, Firm Investment decision

 


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