Corporate investment, financing, and dividend policies in the high-tech industry
Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 11
Wang D.H.-M.Journal of Business Research, May 2010, Volume 63 Issue 5, Start page 486, No. of pages 4
The agency theory, transactional cost economics, and traditional strategic management perspectives have provided several key corporate financial policies. However, these policies have generally been discussed and established separately. This study explores the causal structure of corporate financial strategies for the high-tech firms in Taiwan and China. By employing path analysis and directed graphs model, this paper explores the causal relationships among investment, financing, dividend policies, and corporate performance. The results show that the investment expenditures by Taiwan’s firms positively affect financial performance and the increased borrowings jeopardize company’s profits. However, the financing decisions of China’s firms have a positively effect on their capital expenditures. The findings suggest that firms across the Strait adopt different strategies in financial decision environments.Article type: Research paperISSN: 0148-2963Reference: 39AR486
Keywords: China, Financing, High technology, Organizational performance, Taiwan
