Dividend Volatility and the Relevance of Dividend Policy: Comparisons among Different Industries in Taiwan
| Autor: | Yung-Han Hsu, 徐詠涵 |
|---|---|
| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 The relationship between stock and dividend roots in the information content theory in Linter (1956). Dividend policy contains a company’s expectation of its future earing, and is thus capable of explaining its stock price. Following that, the dividend-discount model implies that the stock price should be equal to the present value of expected future dividends. This then implies a long-term relationship between stock price and dividend payout (Campbell and Shiller, 1987 and Nasseh and Strauss, 2003). Nevertheless, the empirical evidence on the predicting power of the dividend to stock seems to be surprisingly weak (Campbell and Shiller, 1987 and Lee, 1996). In this paper, we try to shed some light on this issue by incorporating the dividend volatility into the model. This very variable has long been ignored in the linearization process in the dividend-discount model, leaving aside the fact that the volatility of dividend leads to changes in stockholders’ returns. We thus try to investigate the relationship among stock price, dividend and dividend volatility with Taiwan’s data. Dividend policy among different industries is also provided in this paper. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|