This paper examines the macroeconomic experience of Australia from 1961/62 to 1988/89 focusing on the links between the fiscal deficit, private savings, private investment, the balance of payments and relative prices. Alternative theoretical hypotheses are considered in an attempt to explain the...

Widespread increases in corporate leverage occurred over the 1980s in Australia. There was also considerable variation in leverage across firms. This paper uses a sample of 209 firms, observed annually between 1973 and 1991, to explore both cross-sectional and time variation in financial...

This paper looks at the evolution of corporate balance sheets and investment over the past few years. (Lowe and Shuetrim (1992) also provide information on the evolution of corporate gearing in the 1980s. This paper focuses on the more recent experience of balance sheet restructuring and...

Recent theoretical developments have shown that cash flows and the structure of a firm’s balance sheet may have an important influence on investment. Establishing a link between cash flows, leverage and investment provides insights into the way that monetary policy and cyclical factors more...

Several recent tax changes have increased the incentive for companies to pay dividends compared to retaining earnings. These are the introduction of the Capital Gains Tax (CGT), dividend imputation and the taxation of the earnings of superannuation funds. In this paper we examine the...

The system of providing for retirement income in Australia has undergone marked changes over the past two decades, particularly in the 1980s when changes in pension entitlements and superannuation legislation encouraged a sharp rise in superannuation saving. However, there has been no obvious...