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 Title
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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