<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>This study uses <link rid="b32">Ohlson's (1995</link> and <link rid="b34">2001</link>) accounting-based equity valuation model to structure tests of four explanations for the anomalously positive pricing of dividends reported by <link rid="b36">Rees (1997)</link> and <link rid="b16">Fama and French (1998)</link>. First, we find that dividends are not simply a proxy for...

The winner-takes-all business model followed by many U.S. Internet firms predicts that spending on intangibles will exhibit increasing profitability returns-to-scale. That is, larger expenditures should be more profitable per dollar of investment than small expenditures because larger...