Corporate value, price and dividend policy: A case study of U.S. listed firms

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F24%3A39920717" target="_blank" >RIV/00216275:25410/24:39920717 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/44555601:13510/24:43897922

Výsledek na webu

<a href="https://onlinelibrary.wiley.com/doi/10.1002/mde.4024" target="_blank" >https://onlinelibrary.wiley.com/doi/10.1002/mde.4024</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1002/mde.4024" target="_blank" >10.1002/mde.4024</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Corporate value, price and dividend policy: A case study of U.S. listed firms

Popis výsledku v původním jazyce

Focussed upon the U.S. stock market, the paper investigates the role of dividend policy, its level and (in)stability in generation of relative corporate value and relative stock price. Whilst relative corporate value is proxied by Tobin&apos;s q and relative stock price is operationalised by the four most frequent multiples (P/E, P/B, P/S and P/FCF), the dividend policy is represented by three popular metrics measuring the propensity to pay dividends. Controlling for operating and macroeconomic conditions, panel data techniques in a simultaneous equations framework are employed to 115,837 quarterly observations for 1466 firms represented in the S&amp;P 1500 Composite Index over the period 1989-2022. The findings reveal that dividend policy matters, albeit the response of Tobin&apos;s and multiples to dividend policy is asymmetric. In particular, corporate value of U.S. firms is found to increase with per-share dividend amounts but decreases relative to the dividend payout ratio and yield. The established empirical evidence reaffirms claims against dividend neutrality and is useful in developing pre-selection investing strategies that relate practices in dividend policy to fundamental screening based on multiples.

Název v anglickém jazyce

Corporate value, price and dividend policy: A case study of U.S. listed firms

Popis výsledku anglicky

Focussed upon the U.S. stock market, the paper investigates the role of dividend policy, its level and (in)stability in generation of relative corporate value and relative stock price. Whilst relative corporate value is proxied by Tobin&apos;s q and relative stock price is operationalised by the four most frequent multiples (P/E, P/B, P/S and P/FCF), the dividend policy is represented by three popular metrics measuring the propensity to pay dividends. Controlling for operating and macroeconomic conditions, panel data techniques in a simultaneous equations framework are employed to 115,837 quarterly observations for 1466 firms represented in the S&amp;P 1500 Composite Index over the period 1989-2022. The findings reveal that dividend policy matters, albeit the response of Tobin&apos;s and multiples to dividend policy is asymmetric. In particular, corporate value of U.S. firms is found to increase with per-share dividend amounts but decreases relative to the dividend payout ratio and yield. The established empirical evidence reaffirms claims against dividend neutrality and is useful in developing pre-selection investing strategies that relate practices in dividend policy to fundamental screening based on multiples.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Managerial and Decision Economics

ISSN

0143-6570

e-ISSN

1099-1468

Svazek periodika

45

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

21

Strana od-do

664-684

Kód UT WoS článku

001088547000001

EID výsledku v databázi Scopus

2-s2.0-85174948912