We study a family of diffusion models for compounded risk reserves, which account for the investment income earned and for the inflation experienced on claim amounts. We are interested in the models which the dividend payments are paid from the risk reserves. After defining the process of conditional probability over finite time, the classical diffusion processes results turn the nonlinear stoc...

The purpose of this study is to identify the determinants of dividend policy in Malaysian financial institutions. Panel data set were constructed from 33 financial institutions in Malaysia for a period of 10 years (2001-2010). The results show a statistically significant positive relationship between dividend policy and profitability, which implies that Malaysian financial institutions distribu...

Yes. We find that dividend changes predict future unexpected earnings changes in each of the next four quarters. These earnings impacts are persistent, leading to higher than expected earnings levels for at least three years after the dividend change. These results are robust to various measures of expected earnings, including analyst forecasts and a flexible function of past earnings and retur...

Our paper suggests a simple, recursive residuals (out-of-sample) graphical approach to evaluating the predictive power of popular equity premium and stock market timeseries forecasting regressions. When applied, we find that dividend ratios should have been known to have no predictive ability even prior to the 1990s, and that any seeming ability even then was driven by only two years, 1973 and ...

Recent empirical studies of dividend taxation have found that: (1) dividend tax cuts cause large, immediate increases in dividend payouts, and (2) the increases are driven by firms with high levels of shareownership among top executives or the board of directors. These findings are inconsistent with existing "old view" and "new view" theories of dividend taxation. We propose a simple alternativ...

this paper aims to determine the impact of dividend policy on stock price volatility by taking firms listed on tehran stock exchange.  a sample of 68 listed companies from tehran stock exchange is examined for a period from 2001 to 2012.  the estimation is based on cross-sectional ordinary least square regression analysis to find the relationship between share price volatility and dividend poli...