Empirical relationship between the dividend and investment decision: do emerging market firms behave differently?
AbstractThis study provides an emerging economy perspective towards the Miller and Modigliani (1961) separation principle. Applying a panel Granger causality test proposed by Hurlin and Venet (2004) to the dividend and investment data of 265 Indian manufacturing firms for 1992--2004, the M--M hypothesis is rejected and evidence found in favour of the joint determination of financing and investment decisions.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Applied Financial Economics Letters.
Volume (Year): 2 (2006)
Issue (Month): 3 (May)
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