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The role of payout ratio in the relationship between stock returns and dividend yield

McManus, Ian D., Ap Gwilym, Owain and Thomas, Stephen H. (2004) The role of payout ratio in the relationship between stock returns and dividend yield Journal of Business Finance and Accounting, 31, (9-10), pp. 1355-1387. (doi:10.1111/j.0306-686X.2004.00577.x).

Record type: Article


The paper examines the relationship between returns and dividend yield in the UK stock market, and introduces earnings-related data to the asset pricing model in the form of payout ratio.
The latter has a considerable effect upon the inferences which would otherwise be drawn from a study of the dividend yield-returns relationship in the absence of such earnings information. Payout ratio conveys additional signalling information and is an important adjunct to dividend yield in explaining returns.

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Published date: 2004
Keywords: returns, asset pricing, payout ratio, dividend yield, earnings


Local EPrints ID: 35961
ISSN: 0306-686X
PURE UUID: fe857929-3efb-4ccf-a08e-3ed974ea0a54

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Date deposited: 23 May 2006
Last modified: 17 Jul 2017 15:46

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Author: Ian D. McManus
Author: Owain Ap Gwilym
Author: Stephen H. Thomas

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