Growth Expectations Drive Stock Prices? It May Be the Other Way Around
Share-price changes may have less to do with fundamentals than conventionally thought.
Growth Expectations Drive Stock Prices? It May Be the Other Way AroundWhy banks pay ever-larger dividends
Investors use the payments as a proxy for financial strength
Paying regular and increasing dividends allows banks to signal confidence about their solvency.
Eric Floyd, Nan Li, and Douglas J. Skinner, “Payout Policy through the Financial Crisis: The Growth of Repurchases and the Resilience of Dividends,” Journal of Financial Economics, November 2015. Chart reprinted with permission from Elsevier.
Share-price changes may have less to do with fundamentals than conventionally thought.
Growth Expectations Drive Stock Prices? It May Be the Other Way AroundWhen the pandemic hit the United States, medical debt appeared likely to soar. Instead, it fell.
The COVID Medical-Debt Bomb That FizzledWhen investors receive dividends, they often use the cash to buy more shares of stock—and not necessarily of the company that issued the dividend.
Dividend Payouts Lead to Stock-Price BumpsYour Privacy
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