{"title":"Stock prices and dividends: A South African perspective","authors":"A. Charteris, K. J. Chipunza","doi":"10.1080/10293523.2019.1682786","DOIUrl":null,"url":null,"abstract":"ABSTRACT The present value model (PVM) is considered a cornerstone of financial theory and practice, yet the limited empirical tests thereof have produced varying results depending on the method used. In addition, these tests have focused principally on developed countries, with little knowledge of the validity of the PVM for developing markets. This study employs firm-level data and advanced panel unit root and cointegration tests to assess the PVM for South Africa using a sample of firms that have consistently paid dividends over the period 1999 to 2018. The results largely support the assertion of the model that the stock price is a function of future dividends but the relationship does not move in perfect harmony.","PeriodicalId":44496,"journal":{"name":"Investment Analysts Journal","volume":"49 1","pages":"1 - 15"},"PeriodicalIF":1.2000,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10293523.2019.1682786","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Investment Analysts Journal","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/10293523.2019.1682786","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 4
Abstract
ABSTRACT The present value model (PVM) is considered a cornerstone of financial theory and practice, yet the limited empirical tests thereof have produced varying results depending on the method used. In addition, these tests have focused principally on developed countries, with little knowledge of the validity of the PVM for developing markets. This study employs firm-level data and advanced panel unit root and cointegration tests to assess the PVM for South Africa using a sample of firms that have consistently paid dividends over the period 1999 to 2018. The results largely support the assertion of the model that the stock price is a function of future dividends but the relationship does not move in perfect harmony.
期刊介绍：
The Investment Analysts Journal is an international, peer-reviewed journal, publishing high-quality, original research three times a year. The journal publishes significant new research in finance and investments and seeks to establish a balance between theoretical and empirical studies. Papers written in any areas of finance, investment, accounting and economics will be considered for publication. All contributions are welcome but are subject to an objective selection procedure to ensure that published articles answer the criteria of scientific objectivity, importance and replicability. Readability and good writing style are important. No articles which have been published or are under review elsewhere will be considered. All submitted manuscripts are subject to initial appraisal by the Editor, and, if found suitable for further consideration, to peer review by independent, anonymous expert referees. All peer review is double blind and submission is via email. Accepted papers will then pass through originality checking software. The editors reserve the right to make the final decision with respect to publication.
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