Journal of Financial and Quantitative Analysis Vol. 6 No. 4 1971
A Pedagogic Note on Dividend Policy
Abstract
For some time there has been disagreement among financial economists as to the effect of dividend policy on the valuation of a firm under conditions of uncertainty. On one side of the debate Miller and Modigliani (MM) [11] argue that the capitalization rate on shares is independent of the dividend policy of the firm. Gordon [6], [7], [8], and others, on the other hand, reject this proposition and present theories of valuation where share prices and capitalization rates are very much dependent upon the dividend policies of firms.
- DOI
- 10.2307/2329613
- Volume
- 6
- Issue
- 4
- Pages
- 1147
- Sources
- crossref openalex