Sign in
An Empirical Examination of the Price-Dividend Relation with Dividend Management
Journal article   Peer reviewed

An Empirical Examination of the Price-Dividend Relation with Dividend Management

Lucy F. Ackert and William C. Hunter
Journal of financial services research, Vol.19(2-3), pp.115-129
04/01/2001
DOI: 10.1023/A:1011190800890

View Online

Abstract

Some recent empirical evidence suggests that stock prices are not properly modeled as the present discounted value of expected dividends. In this paper, we estimate a present value model of stock price that is capable of explaining the observed long-term trends in stock prices. The model recognizes that firm managers control cash dividend payments. The model estimates indicate that stock price movements may be explained by managerial behavior.
Dividend payout Present value model Stock price determination Volatility

Details

Metrics

1 Record Views
Logo image