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http://dx.doi.org/10.15207/JKCS.2015.6.1.103

Investment and Debt ratio of ICT firms  

Chon, Mi-Lim (Department of Accounting, Cheongju University)
Publication Information
Journal of the Korea Convergence Society / v.6, no.1, 2015 , pp. 103-108 More about this Journal
Abstract
This paper investigate the determinants of investment for a cross-section of firms in emerging market. I examine three factors expected to affect investment: debt ratio, growth rate, and industry. I find that debt ratio and ICT firms are positively associated with investment in emerging market. I also find that ICT firms with high debt ratio have higher net capital expenditures. While the growth rate is unrelated to net capital expenditures. Unlike the evidence from the developed markets, debt ratio has significant and positive impact on investment (net capital expenditures) in the emerging market.
Keywords
ICT industry; Emerging market; Investment; Debt ratio; Agency theory;
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