Abstract I show that cash distributions through mergers, dividend payments, and stock buybacks are, in principle, similar to investor fund flows generating demand for investable assets. Abnormal returns on certain assets can be forecasted because delegated investors predictably reinvest toward holdings. Novel measures of stock-level constructed using proportional reinvestments by mutual funds p...

This paper examines the relative importance of earnings and operating cash flows in equity valuation. In contrast to previous studies that use stock returns or future operating cash flows, we use ex post intrinsic value of equity as the criterion for comparison. Ex post intrinsic value of equity is determined adopting both the discounted dividend and residual income models with ex post (future)...

This paper is concerned with the problems of achieving lasting peace. One dimension includes fairly sharing the post-war economic and political pie or the peace dividend. This requires post-war allocations that are envy free. Many peace agreements that end civil wars are notoriously unstable in that they are often not implemented, or break down after some time. Commitments to the peace treaty a...

We show that the dividend growth rate implied by the futures market is informative about (i) the expected dividend growth rate and (ii) the expected dividend risk premium. We model the dividend risk premium and explore its implications for the predictability of dividend growth and aggregate stock returns. We show that accounting for the dividend risk premium strengthens the predictability of di...

This article presents the resource-constrained project scheduling problem with discounted cash flow maximization criterion from perspective of a contractor. Cash flows are considered as contractor’s expenses related to execution activities and client’s payments (revenue contractor) after completion contractual stages. To solve problem, dedicated techniques generate solutions simulated annealing...

We present a new approach to examining the dividend signalling hypothesis by investigating dividend resumptions by former payers. Evidence regarding the signalling hypothesis has been mixed to date. In support of previous work, we find that dividend policy is sticky, whereby the achievement of profitability does not necessarily lead to the resumption of dividend payment. We find no evidence of ...

High dividend yields imply that either future dividend growth must be low, or future discount rates must be high, or both. While previous studies have focused on the predictability of expected returns from dividend yields, dividend yields also strongly predict future dividends, and the predictability of dividend growth is much stronger than discount rates returns at a 1-year horizon. Inference ...

It has been argued that when management is more concerned with the firm’s survival than with profitability, it is efficient to use a levered capital structure and thereby commit to the transfer of the liquidation decision to lenders. Our paper analyzes this view in a setting where lenders may behave opportunistically when they control the liquidation decision — i.e., when there is a lender hold...

This paper applies free cash flow and information asymmetry hypotheses to investigate whether managers pursuit their private benefits by using capital investment expenditure (hereafter CI) increases or not, and to explore whether managers decrease CI as more dividend payments under information asymmetry hypothesis. Consequently, the present study investigates the effect of CI increases on abnor...

Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W First Quarter 2003 P eople often speculate that a particular stock is overpriced, or underpriced, and analysts sometimes issue stock price targets followed abruptly by price “corrections.” A natural question is, What is the right price for a stock? Mergers and acquisitions of firms rely heavily on determining the right or fair price of...