FINANCE Corporate financial policy and R and D Management

Two-Stage Least Squares (2SLS) Thus let us examine again the problem of estimating the parameters of y·1= Y 1 β·1+ X 1 γ·1+ u·1 ...

that 2SLS is optimal in some sense within the class of consistent estima- tors of the parameters β·1, γ·1, which use only inform ...

and Yi and Xi are, respectively, the matrices of observations on the explanatory current endogenous and predetermined variables ...

Hence the ith subvector of δ ~ is given by (5.53) (5.53) which is exactly the 2SLS estimator and, incidentally, is also the comp ...

and its associated transform R–1X′y⋅i= R–1X′Yiβ⋅i+ R–1X′X⋅iγ⋅i+ R–1X′u⋅i i= 1, 2,...,m (5.55) where Ris a nonsingular matrix suc ...

The Aitken estimator of δis given by (5.61) where Φ= Σ⊗IG= Cov(r) (5.62) Clearly, since Σwill typically be unknown, the estimato ...

(5.66) (5.66) where, Qi= R–1X′Zi Σ ^–1 = (σ^ij) Zi= Yi,Xi i= 1, 2,...,m (5.67) In Chapters 6 and 7, we develop OLS, 2SLS, and 3S ...

CHAPTER 6 Interdependencies among Corporate Financial Policies I n this chapter, we develop and empirically verify the hypothesi ...

sions are interdependent, and simultaneous equations must be used to esti- mate the equations econometrically. The goal of this ...

DIVL = last year’s dividends/sales CAK = increase in net working capital/sales PK = profits/capital stock D2sales = two-year cha ...

96 INTERDEPENDENCIES AMONG CORPORATE FINANCIAL POLICIES TABLE 6.1 Dividend Equation OLS 1952 1953 1954 1955 Variable Coeff T-Sta ...

The Model 97 TABLE 6.1 (Continued) 1968 1969 1970 1971 Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat Intercept 0. ...

98 INTERDEPENDENCIES AMONG CORPORATE FINANCIAL POLICIES TABLE 6.1 (Continued) 1984 1985 1986 1987 Variable Coeff T-Stat Coeff T- ...

The Model 99 TABLE 6.1 (Continued) 2000 2001 2002 Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Intercept 0.012 9.76 0.01 11.5 ...

100 INTERDEPENDENCIES AMONG CORPORATE FINANCIAL POLICIES TABLE 6.2 (Continued) 1960 1961 1962 1963 Variable Coeff T-Stat Coeff T ...

The Model 101 TABLE 6.2 (Continued) 1972 1973 1974 1975 Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat Intercept 0 ...

102 INTERDEPENDENCIES AMONG CORPORATE FINANCIAL POLICIES TABLE 6.2 (Continued) 1984 1985 1986 1987 Variable Coeff T-Stat Coeff T ...

The Model 103 TABLE 6.2 (Continued) 1996 1997 1998 1999 Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat Intercept 0 ...

104 INTERDEPENDENCIES AMONG CORPORATE FINANCIAL POLICIES TABLE 6.3 (Continued) 1956 1957 1958 1959 Variable Coeff T-Stat Coeff T ...

The Model 105 TABLE 6.3 (Continued) 1968 1969 1970 1971 Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat Intercept 0 ...