In Search of Reasons Why Firms Begin Paying Regular Cash Dividend

Firms’ Characteristics and Adjustment Speed of Dividend Payout Ratio: System-GMM and Differenced-GMM Approaches

Since paying over or not paying dividends can cause the firms to face financial crises, firms are always looking for discovery and using a target (optimal) dividend payout ratio. It should be noted that a dividend ratio is a dynamic number and a variety of factors affect it over time. The movement speed of the dividend payout ratio towards the target depends on several factors. This paper inves...

American Options on Dividend-Paying Assets

We provide a comprehensive treatement of option pricing with particular emphasis on the valuation of American options on dividend-paying assets. We begin by reviewing valuation principles for European contingent claims in a financial market in which the underlying asset price follows an Itô process and the interest rate is stochastic. Then this analysis is extended to the valuation of American ...

Dividend Policy and Cash Flow Uncertainty

An Investigation into Effects of Dividend Policy on Financial Growth of Advertising Firms in Kenya

Effects of dividend policy on corporate financial growth, is a major concern of most entities. Whether dividends have an influence on the value of the firm, is an important question in dividend policy. This study aimed at investigating the effects of dividend policy on financial growth of media firms. The study was conducted in Nairobi at The Nation media Group Headquarters. Respondents were se...

American Capped Call Options on Dividend-Paying Assets

Thi s a r t i c l e addres se s the p rob l em o f va lu ing Amer i can ca l l op t i ons w i th caps on d i v idendpaying assets . Since early exercise is al lowed, the valuat ion problem requires the determinat ion of opt imal exercise pol icies . Options with two t ypes o f caps a re ana ly zed cons tan t caps and caps with a constant growth rate. For constant caps, it is optimal to exercise...