TY - JOUR
AU - Bicksler, James L.
AB -  THERE BEEN an ever-increasing theoretical literature devoted to dividend policy. HAS With few exceptions, items in this literature fall into one of the following three categories: 1. Descriptive dividend models: These seek the determinants of corporate dividends and retained earnings. 2. Descriptive stock-price models: These seek the determinants of the price of equity shares and by inference the magnitude of the marginal capitalization rates for dividends and retained earnings. 3. Normative theories of the valuation of equity shares: These study the effect of dividend-retention policy upon the price of equity shares given various assumptions about conditions in the capital markets. The literature has rarely directed its attention to hypotheses crossing the abovedesignated boundaries. This dissertation is an example of such an attempt. It utilizes the implications of the normative theory (category 3 ) of the determinants of equity shares under uncertainty in a world characterized by taxes, investor preferences, and (possibly) imperfect capital markets to affirm the a priori expectation that in the real world dividend-retention policy probably does matter. The optimum dividend policy is to select the dividend-retention mix that maximizes the price of the equity shares. The specific dividend policy that should be adopted depends upon 
TI - EMPIRICAL TESTS OF THE COMPATIBILITY OF SELECTED EQUITY SHARE‐PRICE EQUATIONS WITH A DESCRIPTIVE DIVIDEND MODEL *
JF - The Journal of Finance
DO - 10.1111/j.1540-6261.1969.tb00351.x
DA - 1969-03-01
UR - https://www.deepdyve.com/lp/wiley/empirical-tests-of-the-compatibility-of-selected-equity-share-price-kYOiaedZc0
SP - 106
VL - 24
IS - 1
DP - DeepDyve
ER -