Empirical relationship between the dividend and investment decision: do emerging market firms behave differently?

This 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.

MoreLess

Year of publication:	2006
Authors:	Bhaduri, Saumitra N. ; Durai, S. Raja Sethu
Published in:	Applied Financial Economics Letters. - Taylor and Francis Journals, ISSN 1744-6546. - Vol. 2.2006, 3, p. 155-158
Publisher:	Taylor and Francis Journals

More details

Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005495887