THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION
This paper examines the causality among earnings, dividends and investment using the Granger-causality model. Using a sample of publicly traded South Korean manufacturing companies, we find that investments cause earnings. We also find that earnings cause dividends and investments cause dividends. T...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
People & Global Business Association (P&GBA)
2006-06-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150624112649-BQCN2.pdf |
| _version_ | 1811189818512637952 |
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| author | Yong Kim Gunhee Lee Jong Rhim JunGyu Kang |
| author_facet | Yong Kim Gunhee Lee Jong Rhim JunGyu Kang |
| author_sort | Yong Kim |
| collection | DOAJ |
| description | This paper examines the causality among earnings, dividends and investment using the Granger-causality model. Using a sample of publicly traded South Korean manufacturing companies, we find that investments cause earnings. We also find that earnings cause dividends and investments cause dividends. These findings are supportive of non0trivial agency costs, asymmetric information, and their implications. The finding imply that corporate financial decisions should be analyzed within a simultaneous model framework. |
| first_indexed | 2024-04-11T14:40:18Z |
| format | Article |
| id | doaj.art-16e4f112692b4c06b4dabba46a4a9dfb |
| institution | Directory Open Access Journal |
| issn | 1088-6931 2384-1648 |
| language | English |
| last_indexed | 2024-04-11T14:40:18Z |
| publishDate | 2006-06-01 |
| publisher | People & Global Business Association (P&GBA) |
| record_format | Article |
| series | Global Business and Finance Review |
| spelling | doaj.art-16e4f112692b4c06b4dabba46a4a9dfb2022-12-22T04:17:57ZengPeople & Global Business Association (P&GBA)Global Business and Finance Review1088-69312384-16482006-06-011122130THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISIONYong Kim0Gunhee Lee1Jong Rhim2JunGyu Kang3Hansei UniversitySogang UniversityUniversity of Southern IndianaDong-Eui UniversityThis paper examines the causality among earnings, dividends and investment using the Granger-causality model. Using a sample of publicly traded South Korean manufacturing companies, we find that investments cause earnings. We also find that earnings cause dividends and investments cause dividends. These findings are supportive of non0trivial agency costs, asymmetric information, and their implications. The finding imply that corporate financial decisions should be analyzed within a simultaneous model framework.http://www.gbfrjournal.org/pds/journal/thesis/20150624112649-BQCN2.pdfearningsdividend policyinvestment decisiongranger-cauality model |
| spellingShingle | Yong Kim Gunhee Lee Jong Rhim JunGyu Kang THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION Global Business and Finance Review earnings dividend policy investment decision granger-cauality model |
| title | THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION |
| title_full | THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION |
| title_fullStr | THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION |
| title_full_unstemmed | THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION |
| title_short | THE CAUSALITY AMONG SOUTH KOREAN FIRMS EARNINGS, DIVIDEND POLICY, AND INVESTMENT DECISION |
| title_sort | causality among south korean firms earnings dividend policy and investment decision |
| topic | earnings dividend policy investment decision granger-cauality model |
| url | http://www.gbfrjournal.org/pds/journal/thesis/20150624112649-BQCN2.pdf |
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