Practitioners and some academics use potential dividends rather than actual payments toshareholders for valuing a firm … valuation with potential dividends overstate the actual value of the firm´s equity. In particular, consistently with DeAngelo … firm, and that the use of potential dividends may lead to contradictions. …

Practitioners and some academics use potential dividends rather than actual payments to shareholders for valuing a firm … valuation with potential dividends overstate the actual value of the firm’s equity. In particular, consistently with DeAngelo … firm, and that the use of potential dividends may lead to contradictions. This paper is a modified version of the …

Practitioners and most academics in valuation include changes in liquid assets (potential dividends) in the cash flows … valuation; theoretical arguments show how potential dividends lead to contradiction and to arbitrage losses. Empirical arguments …, from recent studies, suggest that investors discount potential dividends with high discount rates, which means thatchanges …

We examine the value market assigns to components of the cash flow to equity including potential dividends. We study … equity, dividends paid, change in equity investment and change in liquid assets (potential dividends) and are regressed with … one dollar to a future dollar for any of the variables studied. Potential dividends destroy value. A dollar invested in …

Practitioners and academics in valuation include changes in liquid assets (potential dividends) in the cash flows. This …; theoretical arguments show how potential dividends lead to contradiction and to arbitrage losses. Empirical arguments, from recent … studies, suggest that investors discount potential dividends with high discount rates, which means that changes in liquid …

Practitioners and academics in valuation include changes in liquid assets (potential dividends) in the cash flows. This …; theoretical arguments show how potential dividends lead to contradiction and to arbitrage losses. Empirical arguments, from recent … studies, suggest that investors discount potential dividends with high discount rates, which means that changes in liquid …