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Are Reinvested Earnings a Substitute for Dividends?

Goldberg, Elliot - 2018

Irrelevancy theory to function as published by M&M over 30 years ago. It makes the theory appear more mathematical fata morgana …

Persistent link: https://www.econbiz.de/10012911752

Empirical Social Asset Pricing

Hwang, Byoung-Hyoun - 2022

I review the empirical literature on word of mouth (WOM) among investors. I begin with an outline of the empirical challenges that WOM research faces and possible strategies to overcome those challenges. I then discuss recent studies on WOM among retail and institutional investors. The research...

Persistent link: https://www.econbiz.de/10013406015

The Weighted Average Cost of Capital Over the Life-Cycle of the Firm : Is the Overinvestment Problem of Mature Firms Intensified by a Higher WACC?

Garcia, Carlos - 2016

Firm lifecycle theory predicts that the Weighted Average Cost of Capital (WACC) will tend to fall over the lifecycle of …

Persistent link: https://www.econbiz.de/10013002901

Valuation Theory : Linearity, Discount Curves & Market Benchmarks

Rombolotti Axelrod, Alessio - 2014

In this paper I review the definition of weighted average cost of capital and derive the discount coefficient of the firm's cash flows which preserves linearity of the present value function within each discounting period, i.e. in each discounting period the sum of the present value of each cash...

Persistent link: https://www.econbiz.de/10013045433

Optimal Dividends and ALM Under Unhedgeable Risk

Laeven, Roger J. A. - 2010

. Using stochastic control theory, we derive simultaneously the optimal investment policy and the optimal dividend policy …

Persistent link: https://www.econbiz.de/10013147891

Arithmetic of Active Management Revisited

Mendes, António Marques - 2022

In this paper we revisit Sharpe’s (1991) arithmetic of active management. With no transaction costs, we confirm in a 3x3 model with three stock categories and three investor groups (market trackers, smart money, and dumb money) that jointly the active smart and dumb groups cannot beat the...

Persistent link: https://www.econbiz.de/10013294131

Patent Acquisition, Investment, and Contracting

Bowen III, Donald E. - 2017

attention. This paper fills that gap by asking how patent acquisitions interact with firm investment policy. I find that patent … more technological expertise and investment opportunities acquire more patents. Patent sales are the dominant type of … contract and maximize investment incentives; patent licenses frequently contain royalties, which induce under …

Persistent link: https://www.econbiz.de/10012967419

A Fisherian Approach to the Dividend Puzzle : Taxes, Consumption, and Risk Diversification

Mori, Naoya - 2017

This paper presents an alternative theory explaining why firms adopt dividend policies of various kinds at intermediate …

Persistent link: https://www.econbiz.de/10012962377

Management science, economics and finance : a connection

Chang, Chia-Lin; McAleer, Michael; Wong, Wing Keung - 2016

This paper provides a brief review of the connecting literature in management science, economics and finance, and discusses some research that is related to the three disciplines. Academics could develop theoretical models and subsequent econometric models to estimate the parameters in the...

Persistent link: https://www.econbiz.de/10011479822

The Value-Momentum Correlation : An Investment Explanation

Pazaj, Elisa - 2019

This paper shows that both value and momentum premia arise in a q-theoretic framework that considers optimal corporate policies under uncertain financing conditions. Book-to-market and past performance predict future returns because they serve as indicators of firm financing position. The...

Persistent link: https://www.econbiz.de/10012860393