quality. This is in contrast to most traditional signalling literature where debt serves as a signal of quality. The model can …

measured using the free cash flow yield. Data on leverage, revenue from asset utilization, and dividend policy of companies … to be positive and significant while debt-to-equity ratio and dividend payout were both found to be negative and …

,760 firm-year observations. We prepared regression models for the dividend and investment ratio depending on the company … cash flow hypothesis and signaling theory of dividends. Dividends and investment might be a tool to mitigate managerial … situation. The results contribute to the literature on firms' investment- and dividend-cash flow sensitivity and the order of …