Abstract
The paper discusses two antithetical statements of the relationship between the value of the firm and its joint financing and dividend decisions. The paper develops an empirically testable model which relies on the Capital Asset Pricing Model. Empirical tests are conducted on a very large and divergent sample. The empirical results are shown to be consistent with the position which suggests that the interaction between these two corporate decisions is relevant for valuation.
Original language | English |
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Pages (from-to) | 213-229 |
Number of pages | 17 |
Journal | European Economic Review |
Volume | 17 |
Issue number | 2 |
DOIs | |
State | Published - 1982 |