21
2019
Firms Should Avoid Swings in Dividend Payout
Too often boards of directors establish or alter dividend policies for the wrong reasons. They attempt to communicate management's expectations about profitability by changing the dividend payout substantially, or, worse, they subordinate the firm's dividend policy to their investment decision-making.
Continue Reading Oct30
2019
Is the Market Discounting Next Year’s Profits?
Investment analysts often say that a company's common shares command a particular price/earnings ratio (PE) because the market is already discounting the company's earnings for next year. In reality, share prices are not determined as simply as that.
Continue Reading Sep30
2019
What if Capital Markets are "Efficient!"
Many have questioned my references to "sophisticated" investors and the implication that the stock market is efficient because such investors dominate it.... To examine market behavior one must define an "efficient" market and see what implications this holds for investment analysts and money managers.
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