The Effect of Private Information on Investment and Dividend Policy

Private Information, affect Investment and Dividend Policy, investor don’t desire to purchase firm’s security with more private Information, also increase demand for payout. This article tries to provid evidence that shows how Investment and distribution are affected by Private Information. For this purpose Information of 692 firm-year are analysed.
The results shows that there is a positive relation between private information and firm’s investment that despite with were expected, although this observations justify with growth opportunities. Also there is no direct relationship between private information and dividend policy.