Journal article
Growth opportunities, capital structure and dividend policies in Japan
Journal of Corporate Finance, Vol.5(2), pp.141-168
1999
Abstract
This paper, using 5308 observations of listed Japanese firms between the years 1988–1992, provides additional evidence on contracting theory arguments for the relation between growth opportunities, capital structure and dividend policies. To avoid the problems of using cross-sectional proxies for time-sequenced variables, this study uses (1) pooled cross-sectional time-series analysis and (2) time-series analysis with a one-year lag for the dependent variables. Results show significant negative relations between growth opportunities and levels of both debt financing and dividend yields after controlling for firm size, profitability, firm keiretsu affiliations and industry regulation. The results are consistent with contracting cost arguments for corporate finance and dividend policies and confirm the importance of growth opportunities in corporate finance theory.
Details
- Title
- Growth opportunities, capital structure and dividend policies in Japan
- Authors
- Ferdinand A Gul (Author) - City University of Hong Kong
- Publication details
- Journal of Corporate Finance, Vol.5(2), pp.141-168
- Publisher
- Elsevier BV
- DOI
- 10.1016/S0929-1199(99)00003-6
- ISSN
- 1872-6313
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99678893702621
- Output Type
- Journal article
Metrics
28 Record Views