Download or read book The Information Content of Cash flow Measures in Dividend Policy written by Robert P. Crum and published by . This book was released on 1987 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Information Content of Cash Flow Measures in Regard to Enterprise Dividend Policy written by David Edward Jensen and published by . This book was released on 1987 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dividend Policy written by George Frankfurter and published by Elsevier. This book was released on 2003-06-24 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend Policy provides a comprehensive study of dividend policy. It explores the puzzle presented by dividends: irrational and subject to fashion, yet popular and desirable, they remain a priority among managers, even while perceived as largely symbolic. After exploring the history of dividend payments, from the emergence of the modern corporation to current perspectives, it traces the evolution of academic models on dividend policy. Here the authors review models of symmetric and asymmetric information before analyzing academia's accomplishments in solving the dividend puzzle. Related subjects, such as valuation and wealth distribution, round out the authors' presentation about new ways to think about one of the most intriguing subjects in financial economics. The book is recommended for professors and students in departments of finance and business, corporate finance staff, and financial regulators. The only comprehensive study of dividend policy Covers the historical evolution of dividends and academic research on dividend policy Presents new ways of thinking about dividends and dividend policy

Download or read book Dividend Policy Revisited written by Michael Bradley and published by . This book was released on 1996 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Information Content of Dividends written by Roni Michaely and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contrary to the central predictions of signaling models, changes in profits do not empirically follow changes in dividends, and firms with the least need to signal pay the bulk of dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the Campbell (1991) decomposition, we are able to estimate expected cash flows from data on stock returns. Consistent with our model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes, and larger changes in volatility come with larger announcement returns. We find similar results for share repurchases. Crucially, the data support the prediction--unique to our model--that the cost of the signal is foregone investment opportunities. We conclude that payout policy conveys information about future cash-flow volatility.

Download or read book Principles of Accounting Volume 1 Financial Accounting written by Mitchell Franklin and published by . This book was released on 2019-04-11 with total page 1056 pages. Available in PDF, EPUB and Kindle. Book excerpt: The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the "why" as well as the "how" aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.

Download or read book The Cash Flow Permanence and Information Content of Dividend Increases vs Repurchases written by Wayne R. Guay and published by . This book was released on 2011 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We hypothesize that the payout method chosen to distribute a cash flow shock is primarily determined by the permanence of the shock. Dividend increases will be observed following cash flow shocks with a relatively large permanent component while repurchases will be used to distribute shocks that are primarily transient. Further, this implies that the market will use the announcement of the payout method to update its beliefs about the permanence of past and contemporary cash flow shocks. Using a large sample of dividend increases and repurchases, we find support for these hypotheses. The post-shock cash flows of dividend increasing firms do not fully revert back to pre-shock levels. Those of repurchasing firms completely revert to pre-shock levels, even settling below them. The stock price reactions to the announcements of both repurchases and dividend increases show strong evidence that the information in a payout announcement is not only the size of the payout, but also the method used to distribute the cash. The announcement of a payout method that does not match the market's expectations causes the market to update its previous assessment of the permanence of the cash flow shock.

Download or read book The Cash Flow Permanence and Information Content of Dividend Increases Versus Repurchases written by Wayne R. Guay and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We hypothesize that firms choose dividend increases to distribute relatively permanent cash-flow shocks and repurchases to distribute more transient shocks. As predicted, we find that post-shock cash flows of dividend increasing firms exhibit less reversion to pre-shock levels compared with repurchasing firms. We also examine whether the stock market uses the announcement of the payout method to update its beliefs about the permanence of cash-flow shocks. Controlling for payout size and the market's expectation about the permanence of the cash-flow shock, the stock price reaction to dividend increases is more positive than the reaction to repurchases.

Download or read book Payout Policy written by and published by . This book was released on 2007 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book briefly reviews the principal theories of payout policy and dividend policy and summarizes the empirical evidence on these theories. Empirical evidence is equivocal and the search for new explanation for dividends continues.

Download or read book The Information Content of Dividend and Capital Structure Policies written by Paul D. Koch and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We reexamine signaling and agency theories and argue that the free-cash-flow hypothesis implies a stronger information effect for both over- and under-investing firms than for value-maximizing firms. Our results indicate that dividend and capital structure policies interact to provide significant predictive information about future cash flow. We also find a U-shaped relation between the amount of information and Tobin's q. The minimum of this relation occurs near a q value of one. This outcome implies a stronger information effect for both over- and under-investing firms than for value-maximizing firms.

Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.

Download or read book Financial Statement Analysis written by Martin S. Fridson and published by John Wiley & Sons. This book was released on 2002-10-01 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Financial Statement Analysis A Practitioner's Guide Third Edition "This is an illuminating and insightful tour of financial statements, how they can be used to inform, how they can be used to mislead, and how they can be used to analyze the financial health of a company." -Professor Jay O. Light Harvard Business School "Financial Statement Analysis should be required reading for anyone who puts a dime to work in the securities markets or recommends that others do the same." -Jack L. Rivkin Executive Vice President (retired) Citigroup Investments "Fridson and Alvarez provide a valuable practical guide for understanding, interpreting, and critically assessing financial reports put out by firms. Their discussion of profits-'quality of earnings'-is particularly insightful given the recent spate of reporting problems encountered by firms. I highly recommend their book to anyone interested in getting behind the numbers as a means of predicting future profits and stock prices." -Paul Brown Chair-Department of Accounting Leonard N. Stern School of Business, NYU "Let this book assist in financial awareness and transparency and higher standards of reporting, and accountability to all stakeholders." -Patricia A. Small Treasurer Emeritus, University of California Partner, KCM Investment Advisors "This book is a polished gem covering the analysis of financial statements. It is thorough, skeptical and extremely practical in its review." -Daniel J. Fuss Vice Chairman Loomis, Sayles & Company, LP

Download or read book Earnings Dividend Policy and Present Value Relations written by Bruce N. Lehmann and published by . This book was released on 2010 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a Modigliani-Miller world, price equals the risk-adjusted present value of future dividends and dividend policy is irrelevant for asset pricing. This paper searches for cash flows with two characteristics: asset prices can be calculated from their present values and they are invariant with respect to dividend policy. Residual income measures with these features are identified under two assumptions: dividend policy does not alter risk premiums and income earned from investments associated with dividend policy includes capital gains and losses. These results hold for otherwise arbitrary risk premiums in the general no-arbitrage approach to the valuation of uncertain income streams.

Download or read book Dividend Changes and Signaling of Future Cash Flows written by Amy Chun-Chia Chang and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We present fresh evidence on the validity of the dividend signaling hypothesis (DSH), by using a new testing approach. We test the unambiguous prediction from the DSH that the association between current dividend changes and future profitability is stronger for firms with higher marginal net benefits from signaling. Using a simple dividend signaling model, we derive three empirically identifiable drivers of the marginal net benefit of signaling: cash flow predictability, market-to-book, and past equity returns. Our empirical tests support the DSH. There is a significant association between current dividend changes and future earnings performance for firms with low cash flow predictability, low market-to-book ratio, and low past equity returns. But, as predicted by the DSH, the association is much weaker for firms with high cash flow predictability, high book-to-market, and high past equity returns. There is also evidence that the marginal signaling benefits at the firm-level are influenced by aggregate factors: the information content of dividend changes is time-varying, increasing (decreasing) in booms (recessions) and in periods of high (low) aggregate stock market performance.

Download or read book The Banking Industry Guide Key Insights for Investment Professionals written by Ryan C. Fuhrmann and published by CFA Institute. This book was released on 2017 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Momentum Strategies Dividend Policy and Asset Pricing Test written by Hong-Yi Chen and published by . This book was released on 2011 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation includes three essays which investigate momentum strategies, dividend policy, and asset pricing test. The brief abstracts of these three essays are presented as follows. The first essay investigates the existence of revenue momentum strategy and the interrelationship among revenue, price, and earnings momentum strategies. Empirical results indicate that prior returns, earnings surprises and revenue surprises each carries some exclusive information content that is not fully priced by the market. This essay also finds that the market generally underestimates the joint information associated with prior returns, earnings surprises, and revenue surprises. This further leads to a profitable combined momentum strategy, which exploits all three information and yields a monthly return as high as 1.57%. The second essay studies the theoretical and empirical issues of a firm's dividend policy. This essay theoretically extends the proposition of DeAngelo and DeAngelo's (2006) optimal payout policy in terms of the flexibility dividend hypothesis. Using data collected in the U.S. from 1969 to 2009, this essay investigates the impact of growth rate, systematic risk, and total risk on the optimal payout ratio in terms of the fixed-effect model. Results show that a company will reduce its payout when the growth rate increases for the consideration of flexibility, and a nonlinear relationship exists between the payout ratio and the risk. The theoretical model and empirical results can therefore be used to identify whether flexibility or the free cash flow hypothesis should be used to determine the dividend policy. The third essay investigates how measurement errors associated to the market rate of return and estimated beta can affect the capital asset pricing model test. This essay further studies three errors-in-variables estimation models which include grouping method, instrumental variable method, and maximum likelihood method. Using U.S. individual stock and market index data during 1931 to 2009, this essay empirically examines various errors-in-variables estimation methods in testing capital asset pricing model. Empirical results support the role of the market beta in the capital asset pricing model after adjusted by errors-in-variables models.

Download or read book Creative Cash Flow Reporting written by Charles W. Mulford and published by John Wiley & Sons. This book was released on 2005-01-20 with total page 438 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices.