Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence

Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence
Author: Christian Müller
Publsiher: Springer Science & Business Media
Total Pages: 137
Release: 2013-12-30
Genre: Business & Economics
ISBN: 9783658044732

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The stylized facts that firms pay and investors react to dividends disregard dividend neutrality. Taking on the perspective that informational asymmetries are the central determinant for dividend value relevance, Christian Müller assumes that firm’s dividend decision conveys useful information to investors. He shows that investors use dividend changes to revise their a priori expectations about the persistence of a current earnings change. While his theoretical and empirical analyses generally imply that dividend changes constitute informative, but imperfect information signals, he further identifies situations in which they are substantial to investors. Christian Müller’s research comprehensively examines the informational role of dividend policy and provides new insights to the corresponding Bayesian investor learning process.

Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence

Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence
Author: Christian Mueller
Publsiher: Springer Gabler
Total Pages: 137
Release: 2014-01-02
Genre: Business & Economics
ISBN: 3658044748

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The stylized facts that firms pay and investors react to dividends disregard dividend neutrality. Taking on the perspective that informational asymmetries are the central determinant for dividend value relevance, Christian Müller assumes that firm’s dividend decision conveys useful information to investors. He shows that investors use dividend changes to revise their a priori expectations about the persistence of a current earnings change. While his theoretical and empirical analyses generally imply that dividend changes constitute informative, but imperfect information signals, he further identifies situations in which they are substantial to investors. Christian Müller’s research comprehensively examines the informational role of dividend policy and provides new insights to the corresponding Bayesian investor learning process.

Heterogeneity and Persistence in Returns to Wealth

Heterogeneity and Persistence in Returns to Wealth
Author: Andreas Fagereng,Luigi Guiso,Mr.Davide Malacrino,Luigi Pistaferri
Publsiher: International Monetary Fund
Total Pages: 69
Release: 2018-07-27
Genre: Business & Economics
ISBN: 9781484370063

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We provide a systematic analysis of the properties of individual returns to wealth using twelve years of population data from Norway’s administrative tax records. We document a number of novel results. First, during our sample period individuals earn markedly different average returns on their financial assets (a standard deviation of 14%) and on their net worth (a standard deviation of 8%). Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the financial wealth distribution increases the return by 3 percentage points - and by 17 percentage points when the same exercise is performed for the return to net worth. Fourth, wealth returns exhibit substantial persistence over time. We argue that while this persistence partly reflects stable differences in risk exposure and assets scale, it also reflects persistent heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are (mildly) correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.

The Future of Productivity

The Future of Productivity
Author: OECD
Publsiher: OECD Publishing
Total Pages: 120
Release: 2015-12-11
Genre: Electronic Book
ISBN: 9789264248533

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This book addresses the rising productivity gap between the global frontier and other firms, and identifies a number of structural impediments constraining business start-ups, knowledge diffusion and resource allocation (such as barriers to up-scaling and relatively high rates of skill mismatch).

International Evidence on the Effects of Having No Capital Gains Taxes

International Evidence on the Effects of Having No Capital Gains Taxes
Author: Herbert G. Grubel,Fraser Institute (Vancouver, B.C.)
Publsiher: The Fraser Institute
Total Pages: 168
Release: 2001-01-01
Genre: Capital gains tax
ISBN: 9780889751897

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Earnings Earnings Growth and Value

Earnings  Earnings Growth and Value
Author: James A. Ohlson,Zhan Gao
Publsiher: Now Publishers Inc
Total Pages: 77
Release: 2006
Genre: Business & Economics
ISBN: 9781933019420

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Earnings, Earnings Growth and Value presents a model of earnings and dividends leading up to the core principle that growth in earnings explains the price to forward-earnings ratio. This model is referred to as the OJ (Ohlson and Jeuttner-Nauroth) model. The OJ model takes into account two growth measures of earnings -- the near term and the long term -- to explain the price to forward-earnings ratio. Further, the model allows for a broad set of dividend policies. Earnings, Earnings Growth and Value starts from the basics and derives the valuation formula which shows how value depends on earnings and their growth. Some of the topics developed here are include dividend policy irrelevancy (DPI), how one extends the model to incorporate an underlying information dynamic, accounting rules and their influence on the model, and ways in which the model can be extended to reflect operating vs. financial activities. Earnings, Earnings Growth and Value should be required reading for researchers in accounting and finance with an interest in accounting theory, equity valuation and financial accounting.

Financial Statement Analysis and Security Valuation

Financial Statement Analysis and Security Valuation
Author: STEPHEN H. PENMAN
Publsiher: Unknown
Total Pages: 768
Release: 2020-02
Genre: Electronic Book
ISBN: 0078025842

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A History of the Theory of Investments

A History of the Theory of Investments
Author: Mark Rubinstein
Publsiher: John Wiley & Sons
Total Pages: 384
Release: 2011-09-02
Genre: Business & Economics
ISBN: 9781118161098

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"This exceptional book provides valuable insights into the evolution of financial economics from the perspective of a major player." -- Robert Litzenberger, Hopkinson Professor Emeritus of Investment Banking, Univ. of Pennsylvania; and retired partner, Goldman Sachs A History of the Theory of Investments is about ideas -- where they come from, how they evolve, and why they are instrumental in preparing the future for new ideas. Author Mark Rubinstein writes history by rewriting history. In unearthing long-forgotten books and journals, he corrects past oversights to assign credit where credit is due and assembles a remarkable history that is unquestionable in its accuracy and unprecedented in its power. Exploring key turning points in the development of investment theory, through the critical prism of award-winning investment theory and asset pricing expert Mark Rubinstein, this groundbreaking resource follows the chronological development of investment theory over centuries, exploring the inner workings of great theoretical breakthroughs while pointing out contributions made by often unsung contributors to some of investment's most influential ideas and models.