The Role of Payout Ratio in the Relationship Between Stock Returns and Dividend Yield
<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>This paper examines the relationship between returns and dividend yield in the UK stock market, and introduces earnings-related data to the asset pricing model in the form of payout ratio. The latter has a considerable effect upon the inferences which would otherwise be drawn from a study of the dividend yield-returns relationship in the absence of such earnings information. Payout ratio conveys additional signalling information and is an important adjunct to dividend yield in explaining returns. Copyright Blackwell Publishers Ltd, 2004.
Year of publication: |
2004-11
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Authors: | McManus, Ian ; Gwilym, Owain ap ; Thomas, Stephen |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 31.2004-11, 9-10, p. 1355-1387
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Publisher: |
Wiley Blackwell |
Saved in:
freely available
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