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

Lucy F. Ackert () and William C. Hunter

No WP-00-22, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: 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.

Keywords: Stocks; Stock market (search for similar items in EconPapers)
Date: 2000
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Journal Article: An Empirical Examination of the Price-Dividend Relation with Dividend Management (2001)
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