The determination of stock prices and equilibrium expected rates of return in a general equilibrium setting is still imperfectly understood. In particular, as Grossman and Shiller (1981) and others have argued, stock returns appear to be too volatile given the smooth process for dividends and consumption growth. Mehra and Prescott (1985) claim that this smoothness in consumption and dividend gr...

This study was aimed at examining the differences between dividend policy determinants pre- and post-Malaysian Code on Corporate Governance (MCCG) 2012. Several factors, including profitability, lagged dividend, free cash flow, debt, firm size, investment opportunities market risk were tested. The investigated a total number of 631 non-financial firms in Malaysia that covered 7830 firm-year obs...

In this study, performance of classification techniques is compared in order to predict dividend policy decisions. We first analyzed the feasibility of all available companies listed in the Korea Exchange (KRX) market as dividend data sets by using classification techniques. Then we developed a prediction model based on support vector machines (SVM). We compare the classification accuracy perfo...

We consider a model of a nancial corporation which has to nd an optimal policy balancing its risk and expected proots. The example treated in this paper is related to an insurance company with the risk control method known in the industry as excess-of-loss reinsurance. Under this scheme the insurance company divert part of its premium stream to another company in exchange of an obligation to pi...

We provide a new explanation for cross-sectional variation in dividend tax capitalization. Our analysis is twofold. First, we conduct a theoretical analysis that shows that liquidity (illiquidity) mitigates (magnifies) the positive effect of dividend taxes on expected rates of return documented in prior literature. Second, we conduct an empirical analysis centered around the Jobs and Growth Tax...

Since Elton and Gruber's (E&G) original article on taxes and ex-dividend price behavior was published in 1970, over 100 articles have appeared in the leading journals of financial economics examining whether prices fall by less than the dividends and, if so, whether or not the phenomenon is due to tax effects, market microstructure effects, or some other effect. The microstructure argument is t...

This study investigates the excess funds hypothesis using samples of special dividends, regular dividend increases, and self-tender offers. All three types of firms tend to have funds in excess of industry norms before the events. The excess funds are largely nonrecurring for special dividend and self-tender offer firms and recurring for regular dividend increase firms. The analysis of the stoc...

One of the most important issues in corporate finance is whether dividend changes contain information about future earnings and profitability. Although dividend signaling theories imply that dividend increases signal better prospects (e.g., Bhattacharya 1979; John and Williams 1985; andMiller and Rock 1985), many empirical studies have failed to support this idea. Studies by Watts (1973), Goned...

All 137 publicly listed firms in New Zealand were used to analyse the relationship between dividend changes and earning changes. The question being asked is: Do dividend changes point to good past performance, good current performance, or signal growth in future performance. The findings show that there is no statistically significant relationship between dividend changes and either past or fut...