An empirical examination of the price-dividend relation with dividend management

Authors
Ackert, LF Hunter, WC
Citation
Lf. Ackert et Wc. Hunter, An empirical examination of the price-dividend relation with dividend management, J FINAN SER, 19(2-3), 2001, pp. 115-129
Citations number
49
Categorie Soggetti
Economics
Journal title
JOURNAL OF FINANCIAL SERVICES RESEARCH
ISSN journal
09208550 → ACNP
Volume
19
Issue
2-3
Year of publication
2001
Pages
115 - 129
Database
ISI
SICI code
0920-8550(200104/06)19:2-3<115:AEEOTP>2.0.ZU;2-R
Abstract
Some recent empirical evidence suggests that stock prices are not properly modeled as the present discounted value of expected dividends. In this pape r, we estimate a present value model of stock price that is capable of expl aining the observed long-term trends in stock prices. The model recognizes that firm managers control cash dividend payments. The model estimates indi cate that stock price movements may be explained by managerial behavior.