The growth opportunity set and corporate financing and dividend policies

• Main Authors: Chao, Chun Hsiang, 晁群祥
• Other Authors: Ni, Feng Yu
• Format: Others
• Language: zh-TW
• Published: 1994
• Online Access: http://ndltd.ncl.edu.tw/handle/73600526737717310848

碩士 === 國立中山大學 === 企業管理研究所 === 82 === The purpose of this research is to investigate the relationship between corporate''s growth opportunity set and financing and dividend policies. It imply to test the debt-contracting hypotheses of Positive Accounting Theory. The most difficulty of this paper is corporate''s opportunities cannot exacting measure, so I use a composite measure of growth opportunities ,which is designed to reduce classification error in this variable. This index is based on four variables:(1)The ratio of the market value of the firm to the book value of assets,(2) the ratio of the market value of equity to the book value of equity,(3) the earnings/price ratio, (4) the variance of the total return of the firm. The results find that growth firms have significantly lower debt/equity ratios and exhibit significantly lower dividend yields than nongrowth firms.