The Determinants of Investment Behavior of Saudi Industrial Firms
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Abstract
In this paper, we examine simultaneous relationship between respectively cash flow, dividend yield, debt, firm size and the investment. This research used 51 listed Saudi industrial firms, from 2009-2018. First of all, we have noticed that the CF has a statistically significant and positive effect on investment. Second, the dividend yield rate is negatively correlated with the investment. Third, debt and the firm size have a positive and significant effect on the relationship between investment and cash flow. This finding is not a sign of presence of financial constraints but it means that firms of our sample substitute the distribution of dividends by debts.Keywords: investment behavior, investment-cash flow sensitivity, dividend distribution, debt, firm size and financial constraints.JEL Classifications: G31, G32, O16, P330DOI: https://doi.org/10.32479/ijefi.9233Downloads
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Published
2020-03-03
How to Cite
Hechmi, S. B. (2020). The Determinants of Investment Behavior of Saudi Industrial Firms. International Journal of Economics and Financial Issues, 10(2), 203–208. Retrieved from https://econjournals.com.tr/index.php/ijefi/article/view/9233
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