Yarce, Londoño; Miguel, Juan; Regúlez Castillo, Marta; … - Departamento de Fundamentos del Análisis Económico … - 2014
As a necessary condition for the validity of the present value model, the price-dividend ratio must be stationary. However, significant market episodes seem to provide evidence of prices significantly drifting apart from dividends while other episodes show prices anchoring back to dividends....