Managerial Finance: Volume 27 Issue 3

The investment opportunity set: determinants, consequences and measurement

Sanjay Kallapur, Mark A. Trombley

Explains the concept of the investment set (IOS: i.e. chances to invest for expansion, new products, cost reduction etc.) and its effects on firm value. Reviews previous research…

Investment opportunity sets, accounting‐based regulatory contracts, and accounting discretion

Malcolm J. McLelland

Refers to previous research to suggest that US commercial bank managers use discretion to “manage” regulatory capital and that accounting discretion can influence a bank’s…

Financing, dividend and compensation policies subsequent to a shift in the investment opportunity set

Lawrence J. Abbott

Summarizes previous research on the impact of the investment opportunity set (IOS) on firm financing, dividend and compensation policies, develops hypotheses on the effects of IOS…

The association between the investment opportunity set and corporate financing and dividend decisions: some Australian evidence

Stewart Jones, Rohit Sharma

Summarizes previous research on the investment opportunity set (IOS) using price‐based and investment‐based proxies and variance measures; and develops hypotheses on the…

Investment opportunity set dependence of dividend yield and price earnings ratio

Ahmed Riahi‐Belkaoui, Ronald D. Picur

Summarizes previous valuation models based on accounting information, extends the basic model to include dividends and retained earnings, and develops hypotheses on the…

Empirical validation of a general model of growth opportunities

Fouad K. AlNajjar, Ahmed Riahi‐Belkaoui

Summarizes previous research on factors affecting the market value of a firm’s equity and puts forward a mathematical model based on the idea that its investment opportunity set…