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Investment, Dividend, Financing, and Production Policies: Theory and Implications

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Handbook of Quantitative Finance and Risk Management

Abstract

The purpose of this chapter is to discuss the interaction between investment, financing, and dividends policy of the firm. A brief introduction of the policy framework of finance is provided in Sect. 2.1. Section 2.2 discusses the interaction between investment and dividends policy. Section 2.3 discusses the interaction between dividends and financing policy. Section 2.4 discusses the interaction between investment and financing policy. Section 2.5 discusses the implications of financing and investment interactions for capital budgeting. Section 2.6 discusses the implications of different policies on the beta coefficients. The conclusion is presented in Sect. 2.7.

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Authors and Affiliations

  1. Department of Finance, Shih Hsin University, Taipei, Taiwan

    Wei-Peng Chen

  2. Graduate Institute of Finance, National Chiao Tung University, Hsinchu, Taiwan

    Huimin Chung & Keng-Yu Ho

  3. Department of Finance, National Taiwan University, Taipei, Taiwan

    Tsui-Ling Hsu

Authors
  1. Wei-Peng Chen
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  2. Huimin Chung
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  3. Keng-Yu Ho
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  4. Tsui-Ling Hsu
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Corresponding author

Correspondence to Wei-Peng Chen .

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Editors and Affiliations

  1. Department of Finance and Economics, Rutgers University, 94 Rockafeller Road, Janice H. Levin Bldg., New Brunswick, NJ, 08854-8054, USA

    Cheng-Few Lee

  2. State Street Corp., Boston, MA, 94132, USA

    Alice C. Lee

  3. Center for PBBEF Research, North Brunswick, NJ, USA

    John Lee

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Chen, WP., Chung, H., Ho, KY., Hsu, TL. (2010). Investment, Dividend, Financing, and Production Policies: Theory and Implications. In: Lee, CF., Lee, A.C., Lee, J. (eds) Handbook of Quantitative Finance and Risk Management. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-77117-5_2

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