This paper presents models of equity valuation where future dividends are assumed to follow a generalized Bernoulli process consistent with the actual dividend payout behavior of many firms. This uncertain dividend stream induces a probability distribution of present value. We show how to calculate the first moment of this distribution using functional equations. As well, we demonstrate how to ...

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...

The aim of this paper was to examined the influence profitability, cash flow, liquidity, leverage and firm size towards dividend payout ratio. sample includes 11 manufactur companis in consumer goods industry sector listed Inodnesia Stock Exchange (IDX) on year period 2016-2019. We use time series regression (panel data) test hypothesis study. results shows that independent variables have posit...

This paper develops and tests a dynamic, sequential equilibrium model of corporate cash payout policy that endogenizes a firm's dividend initiation decision, and its extreme reluctance to subsequently cut dividends in a sequential equilibrium. After payment of dividends, all excess cash is disgorged via stock repurchases that elicit no price reactions. The theoretical model generates results co...

Adopting a probabilistic approach we determine the optimal dividend payout policy of firm whose surplus process follows controlled arithmetic Brownian motion and cash-flows are discounted at stochastic dynamic rate. Dividends can be paid to shareholders unrestricted rates so that problem is cast as one singular control. The interest rate modeled by Cox–Ingersoll–Ross (CIR) firm's objective maxi...

We ask whether stock returns in France, Germany, Japan, the UK and the US are predictable by three instruments: the dividend yield, the earnings yield and the short rate. The predictability regression is suggested by a present value model with earnings growth, payout ratios and the short rate as state variables. We find the short rate to be the only robust short-run predictor of excess returns,...

We show that a firm’s product characteristics are significantly related to its dividend and share repurchase policies. Using text-based analysis of product descriptions in firm 10-Ks, we examine how the propensity to pay dividends and repurchase shares are affected by how a firm’s products evolve over time, the local competition it faces, and the nature of the clientèle for the firm’s products....

The main issue writer examines in this writing is to analyze whether or not dividend policy is a determinant to maintain stock values or firm values as a whole. It is essential that dividend policy is managed properly to enhance the satisfaction of the investors at any level of characteristics. At the end, investors are the key that determines the stock value movement. Some investors are lookin...

Graham: “It is important for the student to understand why this pleasingly simple method of valuing a common stock or group of stocks had to be replaced by more complicated methods, especially in the growth-stock field. It would work fairly plausibly for assumed growth rates up to, say, 5 percent. The latter figure produces a required dividend return of only 2 percent, or a multiplier of 33 for...