This study tests the hypothesis that firms with high free cash flow (FCF) and low growth opportunities have higher audit fees than other firms. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. In corporate finance, free cash flow (FCF) or free cash flow to firm (FCFF) is a way of looking at a business's cash flow to see what is available for distribution. 1 A TEST OF FREE CASH FLOW HYPOTHESIS: EVIDENCE FROM NIGERIAN QUOTED FOOD & BEVERAGES FIRMS By Jibril Ibrahim Yero Department of Accounting Ahmadu Bello. Yeah, I read trough one or two of his articles while studying materials about buyouts for my master thesis. The Jensen’s article about agency cost of FCF was one of. 1 Agency Problems and Audit Fees: Further Tests of the Free Cash Flow Hypothesis 1. Introduction This study provides further evidence on whether audit fees vary in. This study examines the association between free cash flow (FCF) and audit fees. The association is expected given Jensen's argument that managers of low growth Does Jensen’s Free Cash Flow Hypothesis explain European LBOs today? André Betzer* March 2006 Abstract: Jensen’s “Eclipse of the public corporation” (1989. Journal of Financial Economics 29 (1991) 315-335. North-Holland A test of the free cash flow hypothesis* The case of bidder returns Strategic Management Journal Strat. Mgmt. J., 21: 455–472 (2000) THE FREE CASH FLOW HYPOTHESIS FOR SALES GROWTH AND FIRM PERFORMANCE THOMAS H. BRUSH*1, PHILIP.