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

Some recent empirical evidence suggests that stock prices are not properly modelled 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.

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Year of publication:	2000
Authors:	Ackert, Lucy F. ; Hunter, William C.
Institutions:	Federal Reserve Bank of Chicago
Subject:	Stocks \| Stock market

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Extent:	application/pdf
Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number WP-00-22
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005520049