01197nas a2200157   4500008004100000245007500041210006900116260000900185300001200194490000700206520066800213653001200881653001700893100001800910856011100928       1996                        eng d00aDividend policy and investment: Theory and evidence from US panel data0 aDividend policy and investment Theory and evidence from US panel  c1996  a267-2750 v173 aThis paper examines the importance of dividend policy and liquidity constraints in the context of the firm's investment behaviour. While early financial literature has argued that dividend policy should be independent of firm investment decisions, recent studies indicate that linkages are probable in a world of imperfect capital markets. This study develops an alternative Q specification which incorporates the actual dividend payment of the firm in order to test the hypothesis of independence. Empirical results suggest that after controlling for the firm's dividend payment, liquidity constraints remain an important determinant of firm investment behavior.10aFinance10aOSU-Cascades1 aElston, Julie  u/biblio/dividend-policy-and-investment-theory-and-evidence-us-panel-data-0