This study provides new insight into the market’s allocation of dividend-related and capital gains-based returns on common stock around earnings announcement surprises. To the extent that investors’ cash flow forecasts are revised as earnings surprises occur, Americus Trust prime and score returns reflect changes in respective future dividends and capital gains. About 70% of the value gain from...

This paper aims to knows about profit reporting and describes the quality analysis of shareholders in Pandemic Era. The methods use is quantitative methods. test results prove that dividend distribution status has a positive relationship earnings (companies distribute dividends have better than companies do not dividends). Thus, pay are empirically proven higher discretionary accruals, standard...

We compare the dividend policies of privatelyand publicly-held firms in order to examine Lintner’s (1956) model of dividends, as wells as more recent agency-based and informationbased explanations of observed dividend behavior. Our findings suggest that both public and private firms exhibit a strong aversion to dividend cuts and omissions; however, public firms adhere to a consistent policy of ...

Liquidity and Capital Structure* This paper solves for a firm's optimal cash holding policy within a continuous time, contingent claims framework that has been extended to incorporate most of the significant contracting frictions that have been identified in the corporate finance literature. Under the optimal policy the firm targets a level of cash holding that is a non-monotonic function of bu...

This paper proposes a dynamic risk-based model that captures the high expected returns on value stocks relative to growth stocks, and the failure of the capital asset pricing model to explain these expected returns. To model the difference between value and growth stocks, we introduce a cross-section of long-lived firms distinguished by the timing of their cash flows. Firms with cash flows weig...

We consider a principal-agent model, in which the agent needs to borrow from the principal to finance a project. Our model is based on DeMarzo and Fishman (2003), except that the agent’s cash flows are given by a Brownian motion with drift in continuous time. The difficulty in writing an appropriate financial contract in this setting lies in the fact that the agent can hide cash flows and not p...

This paper proposes a dynamic risk-based model capable of jointly explaining the term structure of interest rates, returns on the aggregate market and the risk and return characteristics of value and growth stocks. Both the term structure of interest rates and returns on value and growth stocks convey information about how the representative investor values cash flows of different maturities. W...

We develop and test a theory of the interaction between investors' heterogeneity, risk, transactions costs and trading volume. To test our model we take advantage of the specific nature of trading motives around the distribution of cash dividends namely the costly trading of tax shields. Consistent with the theory, we show that when trades occur because of differential valuation of cash flows a...