Dividends move in discrete jumps. Moreover, some companies pay dividends, others do not. Both these aspects necessitate the use of limited dependent variable models in the analysis of dividend behavior. Models of dividend behavior usually ignore these problems and treat dividends as a continuous...

This paper uses cointegration methods to test the market efficiency hypothesis (MEH) in the foreign exchange markets. Four exchange rates are considered--all relative to the U.S. dollar: British Pound, Deutsche Mark, Swiss Franc and Japanese Yen. Survey data on expectations are used to see...