Abstract The purpose of this paper is to highlight the long-term relationship between stock prices and dividends for a sample companies listed on Casablanca Stock Exchange 2002 2016 using cointegration theory especially its developments in panel data. Our results show that are more volatile than dividends, which rejects possibility their anticipation by dividend discount model under assumption ...

We report on a large number of laboratory market experiments demonstrating that a market bubble can be reduced under the following conditions: 1) a low initial liquidity level, i.e., less total cash than value of total shares, 2) deferred dividends, and 3) a bid–ask book that is open to traders. Conversely, a large bubble arises when the opposite conditions exist. The first part of the article ...

Abstract We examine whether dividends serve as substitutes or complements to accounting information in firm valuation. Consistent with substituting for earnings information, we find that dividend paying firms have 11%–15% lower response coefficients (ERCs) than non-payers. more substitution when the provides a stronger signal of permanent earnings: is less likely cut dividend, fund out rather c...

This paper derives optimal perfect hedging portfolios in the presence of transaction costs within the binomial model of stock returns, for a market maker that establishes bid and ask prices for American call options on stocks paying dividends prior to expiration. It is shown that, while the option holder's optimal exercise policy at the ex-dividend date varies according to the stock price, ther...