The Motivational Effects of Awarding At-the-Money Equity ...
We define FCF as the difference between cash flow from operations for year t-1 and the past-three year average (t-1, t-2, t-3) of the firm’s capital expenditures, scaled by current assets at t-1. We set a dummy variable (D_CAPITAL) to one if the free cash flow measure (FCF) is … ................
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