Abstract
This paper investigates the presence of the interaction of investment and financing decisions in Australian firms. Using simultaneous equations incorporating the variables of investment, dividend, and new debt issue, interactive effects are found for two sub-periods.
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Additional information
Dr Carl Chiarella is from the School of Finance and Economics, The University of Technology, Sydney and Toan M Pham, Dr Ah Boon Sim and Madeleine M L Tan are from the School of Banking and Finance, The University of New South Wales. Financial support from the Australian Research Grant Council to Chiarella and Pham is gratefully acknowledged. We are indebted to Dr Francis Koh of the National University of Singapore and, in particular, to an anonymous referee whose comments and suggestions greatly improve the final version of the manuscript. We are solely responsible for any remaining errors.
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Chiarella, C., Pham, T.M., Sim, A.B. et al. The interaction of the financing and investment decisions: Preliminary results in the Australian context. Asia Pacific J Manage 9, 209–229 (1992). https://doi.org/10.1007/BF01732897
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DOI: https://doi.org/10.1007/BF01732897