| 摘要: | The corporate investment, financing and dividend decisions have been attracting a lot of theoretical and practical attention. However, most of ongoing studies have just examined the three financial decisions separately. In theory, they are, to a certain extent, jointly made, which implies that there could exist interdependence among the three decisions. The purpose of this study is, therefore, to examine the interrelationship of the three decisions in the context of the simultaneous-equation regression model with three equations and three dependent variables.
The dependent variables include growth of fixed assets (GOFA) as a proxy of investment decision, debt ratio (DEBT) as a proxy of financing decision, and dividend per share (DPS) as a proxy of dividend decision. The common variables include years of existence (AGE), scale (SIZE), returns on assets (ROA), and ownership (ONS). To meet the order condition, the variables specific to each of the financial decisions include growth of sales (GOS), market to book value ratio (MVBV), and interest rate (IR) for investment decision, net working capital (NWC) and interest rate (IR) for financing decision, and market to book value ratio (MVBV), lagged dividend per share (LDPS), and cash flow per share (CFPS) for dividend decision. The panel data are collected from the balance sheets and income statements of 30 listed companies in the food-drink industry for interval annual in three years, 2011, 2012 and 2013. The pooled least square estimate and pooled two-stage least squares estimate method is applied to estimate the simultaneous equations regression model.
The results indicate that returns on assets (ROA) had a significant effect on all three financial decisions. Moreover, scale of company (SIZE) was positively correlated with financing decision while negatively correlated with investment decision. Ownership (ONS) showed a positive correlation with financing decision, indicating state-run companies tended towards higher debt ratios whereas net working capital (NWC), as is expected, showed a negative correlation with financing decision. The market to book value (MVBV), an indicator of the perspective of a company, exerted positive influences on investment decision and lagged dividend per share (LDPS) also exerted positive influences on dividend decision, which lent support to the hypothesis of stable, predictable dividends. Finally, it is worth noting that there was no causal association among the three financial decisions, indicating that the three decisions might not be made jointly by the food and drink companies under study.
Key words: investment decision, financing decision, dividend decision, simultaneous equations regression, pooled least square estimate, pooled two-stage least squares estimate. |
