This paper presents a switching regression model of investment decision where the probability of a firm facing financial constraint is endogenously determined. The approach, therefore, obviates the use of a priori criteria to exogenously identify the financially constrained firms, and thereby...

The article studies the determinants of two important decisions for the Indian firms—dividend and investment. In contrast to the Miller and Modigliani (1961) model, in which dividend decision is separable from its investment decision, the article finds evidence to support the argument...

This paper presents a switching regression model of investment decision where the probability of a firm facing financial constraint is endogenously determined. The approach, therefore, obviates the use of a priori criteria to exogenously identify the financially constrained firms, and thereby...

The article addresses one of the most important policy questions: what role do emerging stock markets play in influencing real decisions such as corporate private investment? In this article we present some stylised facts about the relationship between the stock market and corporate investment...