Senior members of the government,including Prime Minister Scott Morrison,have also suggested companies should focus less on social and environmental issues.
Though Mr Chaney did not reference the Treasurer's speech,he addressed commentary"that Australian companies focus too much on dividends and capital returns",saying it represented a misunderstanding of corporate finance.
"The misunderstanding is that a company is limited by capital rather than by investment opportunities;and that there is a trade-off between dividends and capital investment. Neither is true,"he said.
"For large companies in particular,capital is effectively unlimited,except perhaps during rare times of crisis. At almost all times,debt and equity markets are only too willing to provide capital for good investments. The challenge is to find them."
At almost all times,debt and equity markets are only too willing to provide capital for good investments. The challenge is to find them.
Wesfarmer chairman Michael Chaney
Instead,Mr Chaney attributed Australian companies'high rate of dividend payout to this country's franking credits policy,saying responsible companies returned those credits to shareholders.
The issue of making capital investments was"entirely separate",he said,with good investments"few and far between".