Dividend Policy and Stock Price Behaviour in Indian Corporate Sector: A panel data approach Upananda Pani∗ Abstract: This paper attempts to explore the possible links between dividend policy and stock price behaviour in Indian corporate sector. A sample of 500 listed companies from BSE are examined for the years 1996-2006.Dividend policy has always been a source of controversy despite years of theoretical and empirical research both in developed countries and emerging economies. The present paper
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Dividend Policy and Firm Performance: Hotel REITs vs. Non-REIT Hotel Companies Executive Summary. This article investigates whether the greater reliance of real estate investment trusts (REITs) relative to non-REIT corporations on external equity financing suggests greater capital market discipline of REIT management‚ or greater access to capital‚ overpaying for assets‚ overbuilding and overinvestment. Our analysis is based on a sample of sixteen hotel REITs and fifty-one non-REIT hotel corporations
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and Modigiliani (1961) prove that dividend policy is irrelevant to share value in perfect and efficient capital markets. In this setup‚ no rational investor has a preference between dividends and capital gains. However‚ dividend payout policy is still discussed extensively until now. In this proposal‚ I use a sample of companies from 33 countries around the world to shed light on the relationship among legal origin‚ insider holdings‚ corporate governance‚ and dividend payout policy. This idea mainly
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1. Dividend Growth ModelThe basic assumption in the Dividend Growth Model is that the dividend is expected to grow at a constant rate. That this growth rate will not change for the duration of the evaluated period. As a result‚ this may skew the resultant for companies that are experiencing rapid growth. The Dividend Growth Model is better suited for those stable companies that fit the model. Those that are growing quickly or that don ’t pay dividends do not fit the assumption parameters‚ and thus
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THE INVESTMENT DECISION‚ THE FINANCING DECISION AND THE DIVIDEND DECISION ARE SIDES OF THE FINANCIAL MANAGEMENT TRIANGLE WITH VISIBLE INTERFACE. EXAMINE THIS STATEMENT CRITICALLY A SEMINAR PAPER PRESENTED IN PARTIAL FULFILMENT OF COURSE REQUIREMENT FOR MANAGERIAL FINANCE BY EMUCHAY KENNETH AZUBUIKE M.SC / FINANCE MATRIC NO: LUC/PG/09/ LEAD CITY UNIVERSITY‚ IBADAN LECTURER: PROF WOLE ADEWUMI INTRODUCTION: In illustrating
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An Empirical Analysis of the Volatile Stock Behavior at the event of Dividend Announcement: Evidence from Indian Capital Market (National Stock Exchange of India) ABSTRACT This paper analyses the impact of dividend announcement on company stock returns for 25 companies listed in five different indices on National Stock Exchange (NSE) i.e. Indian Capital Market. The study has been conducted with the help of event study methodology for a window of 31 days in total. The study gives a comparative
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lower its payout ratio. Recalculate the firm’s debt and current ratios for 1995 assuming that the dividend payout ratio was 20 percent from 1993 to 1995. The extra money would have been used to reduce the firm’s notes payable. Project Dunham’s income and balance sheet for 1996 assuming the bank grants Dunham a $675K note payable at 12 percent and no existing interest-bearing debt is retired. Dividends will be 50 percent of net income. Cash will be the balancing item. Calculate the firm’s 1996 minimum
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Dividend Policy at FPL Group Inc. Because of FPL’s reluctance to increase its dividends and increased competition in the electric utility industry‚ Merrill Lynch’s utility analyst downgraded FPL Group Inc. Kate Stark‚ utility analyst at First Securities Corporation‚ wondered whether she should issue an updated report about stocks of FPL. We investigated the potential risks faced by FPL and its payout policies‚ and according to the results‚ we recommend the shareholders to hold FPL’s stocks.
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alternative methods for leveraging up? Case 2: Dividend policy at FPL Group (Week 10 – not final) 1. What are the most important issues confronting FPL Group in May‚ 1994? 1. From FPL management’s perspective‚ is FPL’s current dividend ratio appropriate? What factors should be considered in determining its dividend policy? 2. Would you recommend a change in FPL’s dividend policy? If so‚ how would you implement the change?
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05^6)) = $949.24 Answer B 4. Cisco will pay a dividend of $5 per share next year‚ and the dividends payout ratio is 50%. Dividends are expected to grow at a constant rate of 8% forever and the required rate of return on the stock is 13%. Calculate the present value of the growth opportunity. (Chapter 4) a. $100 b. $76.92 c. $23.08 d. None of the above Response: EPS= (5/0.5)=$10; No Growth Value = 10/0.13 = 76.92; Dividends next year = 0.5 Growth Value = 5/(0.13-0.08) = 100;
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