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Overinvestment |
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Overinvestment In corporate finance, this refers to managers not acting in the best interests of the shareholders and investing too much (potentially in negative net present value projects). Overinvestment A situation in which the management of a publicly-traded company invests in too many projects, especially when the projects do not benefit shareholders. Overinvestment may be a violation of the management's fiduciary responsibility to shareholders, especially when the managers benefit from the arrangement and investors do not. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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