We find that emerging market firms exhibit dividend behavior similar to U.S. firms, in the sense that dividends are explained by profitability, debt, and the market-to-book ratio. However, empirical dividend policy equations are structurally different, indicating different sensitivities to these...

This paper discusses the role of the dividend tax credit in determining the Canadian ownership pattern of Canadian industry. The analytic tool used is the capital-asset pricing model extended to include differential taxation of dividen ds and capital-gains income across different countries. The...

This paper analyzes the impact of production uncertainty on the firm's optimal output decision. If uncertainty is introduced by an additive risk variable, then short-run optimal output is unchanged, but the owner-manager's expected utility can change causing long-run output effects. If...

This study uses a new data set to assess whether capital structure theory is portable across countries with different institutional structures. We analyze capital structure choices of firms in 10 developing countries, and provide evidence that these decisions are affected by the same variables...

This article looks at the basic reasons why the Canadian banking system was recently judged by the World Economic Forum to be the soundest in the world. It does so by first examining the basic functions of a financial system and what Canadian banks are allowed to do as intermediaries within that...

There are several conceptually "correct" methods for valuing firms and projects, including the weighted average cost of capital (WACC) approach, the flows to equity (FTE) method, and the adjusted present value (APV) or valuation-by-components method. The author examines the relative advantages...