An Empirical Examination of the Price-Dividend Relation with Dividend Management

30 Pages Posted: 26 Dec 2000

See all articles by Lucy F. Ackert

Lucy F. Ackert

Kennesaw State University - Michael J. Coles College of Business

William C. Hunter

University of Connecticut - School of Business; Tippie College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: December 2000

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.

JEL Classification: G12, C53

Suggested Citation

Ackert, Lucy F. and Hunter, William Curt and Hunter, William Curt, An Empirical Examination of the Price-Dividend Relation with Dividend Management (December 2000). Available at SSRN: https://ssrn.com/abstract=254341 or http://dx.doi.org/10.2139/ssrn.254341

Lucy F. Ackert (Contact Author)

Kennesaw State University - Michael J. Coles College of Business ( email )

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Department of Economics and Finance
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William Curt Hunter

University of Connecticut - School of Business ( email )

Tippie College of Business
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United States
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Tippie College of Business ( email )

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