The relationship between dividend- and non-dividend-paying stock prices when considering financial distress

@article{Rahgozar2015TheRB,
  title={The relationship between dividend- and non-dividend-paying stock prices when considering financial distress},
  author={Reza Rahgozar},
  journal={American J. of Finance and Accounting},
  year={2015},
  volume={4},
  pages={19-27}
}
  • R. Rahgozar
  • Published 2015
  • Business
  • American J. of Finance and Accounting
Previous studies on whether dividend policies affect stock prices have offered contradictory results. This study investigates whether dividend-paying stock prices outperform non-dividend-paying stocks and whether there is a strong relationship between dividends and stock prices. It also examines the financial health of dividend-paying firms vs. non-dividend-paying firms. The empirical results show that there is a strong relationship between share prices and dividends. The Altman financial… 

Figures and Tables from this paper

Dividend multifactor process, long-run risk and payout ratios
The purpose of this paper is to examine the theoretical relationship between the multidimensionality of risk and dividend policy, in an intertemporal context. After assuming that dividends are

References

SHOWING 1-10 OF 20 REFERENCES
Dividend policy and share price volatility: UK evidence
Purpose - The purpose of this paper is to examine the relation between dividend policy and share price changes in the UK stock market. Design/methodology/approach - Multiple regression analyses are
The market valuation of cash dividends: A case to consider
How Corporate Managers View Dividend Policy
This study investigates the views of corporate managers about the relationship between dividend policy and value; explanations of dividend relevance including the bird-in-the-hand, signaling,
The Market Valuation of Cash Dividends and the Tax Differential Theory of Dividend Policy: A Case Revisited
One of the most controversial areas in finance concerns the relevance or irrelevance of dividend policy. Survey results reported by researchers indicate that corporate chief financial officers
DIVIDEND POLICY, GROWTH, AND THE VALUATION OF SHARES
In the hope that it may help to overcome these obstacles to effective empirical testing, this paper will attempt to fill the existing gap in the theoretical literature on valuation. We shall begin,
What Moves Stock Prices: Another Look
In 1989, Culter, Poterba, and Summers published an article examining the extent to which ex post movements in aggregate stock prices could be attributed to the arrival of news. They concluded that
Dividends and taxes
FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY
TLDR
An assessment of the quality of ratio analysis as an analytical technique in a bankruptcy prediction context wherein a multiple discriminant statistical methodology is employed.
...
1
2
...