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Article
An Empirical Examination of the Price-Dividend Relation with Dividend Management
Journal of Financial Services Research
  • Lucy F. Ackert, Kennesaw State University and Federal Reserve Bank of Atlanta
  • William C. Hunter, Federal Reserve Bank of Chicago
Department
Economics, Finance and Quantitative Analysis
Document Type
Article
Publication Date
4-1-2001
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.
Digital Object Identifier (DOI)
10.1023/A:1011190800890
Citation Information
Ackert, Lucy F., and William C. Hunter. "An Empirical Examination of the Price-Dividend Relation with Dividend Management." Journal of Financial Services Research 19.2-3 (2001): 115-129.