Chen, Hong-Yi; Gupta, Manak C.; Lee, Alice C.; Lee, … - In: Journal of Banking & Finance 37 (2013) 4, pp. 1205-1222
This study investigates the investment decision and dividend policy jointly from a non-steady state to a steady state. We extend Higgins’ (1977, 1981, 2008) sustainable growth rate model and develop a dynamic model which jointly optimizes the growth rate and payout ratio. We optimize the firm...