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Financial decisions and growth opportunities: a Spanish firm's panel data analysis Author info | Abstract | Publisher info | Download info | Related research | Statistics Pablo de Andrés Alonso
Félix J. López Iturriaga
Juan A. Rodríguez Sanz
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This paper analyses the influence of financial leverage decisions, dividend payout policies and the ownership structure on the firm market value when companies either face, or do not face, profitable growth opportunities. A sample of 101 large non-financial publicly-traded Spanish companies is used. The results confirm the relevance of debt and dividends in terms of firm value creation by showing a negative relationship between firm value and both leverage and dividend payments in the presence of growth opportunities. On the contrary, this relationship turns out to be positive when firms have no profitable investment projects. The results also demonstrate the relevance of ownership structure in the allocation of firm resources.
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Article provided by Taylor and Francis Journals in its journal Applied Financial Economics .
Volume (Year): 15 (2005)
Issue (Month): 6 (March)
Pages: 391-407
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Handle: RePEc:taf:apfiec:v:15:y:2005:i:6:p:391-407Contact details of provider: Web page: http://www.tandf.co.uk/journals/routledge/09603107.html
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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