Department

Economics, Finance and Quantitative Analysis

Document Type

Article

Publication Date

4-2001

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.

Journal

Journal of Financial Services Research

Journal ISSN

0920-8550

Volume

19

Issue

2

First Page

115

Last Page

129

Digital Object Identifier (DOI)

10.1023/A:1011190800890

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