The Role of Dividends in Valuation Models used by Analysts and Fund Managers

Barker, Richard (1999) The Role of Dividends in Valuation Models used by Analysts and Fund Managers. European Accounting Review, 8 (2). pp. 195-218.

Abstract

Asserts that valuation models are not used exclusively to value shares, but that variables such as dividend yield are preferred by analysts to the dividend discount model. Surveys 42 questionnaires from financial analysts, 40 semi-structured interviews with finance directors, 32 with analysts, 39 with fund managers, and undertakes one month's participant observation in an analyst's firm, between 1994 and 1996. Finds out what models they use and what financial ratios. Identifies important information sources for analysts and fund managers, and asks financial directors why they decide on a particular dividend value. Concludes that decisions are short-term and information is used which has a certain payoff; while each group plays games with the others.

Item Type: Article
Keywords: Decision Making; dividends; information; performance measurement; United Kingdom
Subject(s): Accounting
Centre: Faculty of Accounting
Date Deposited: 14 Mar 2013 16:37
Last Modified: 23 Oct 2015 14:08
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4418

Actions (login required)

Edit View Edit View