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A panel-based investigation into the relationship between stock prices and dividends

Authors :
Marsh, Ian W.
Power, David
Publication Year :
1999
Publisher :
Warwick Business School Financial Econometrics Research Centre, 1999.

Abstract

This paper investigates the presence of cointegration between stock prices and dividends for a panel of 56 large UK companies. Using new techniques which account for integrated processes in a panel context we demonstrate that stock prices and dividends are cointegrated, with an implied common discount rate of 5.8%.

Subjects

Subjects :
HG

Details

Language :
English
Database :
OpenAIRE
Accession number :
edsair.core.ac.uk....28b6f19bcdf9242ddf8b8b7ee2fa389b