Does firm value move too much to be justified by subsequent changes in cash flow?
By: Borja Larrain, Motohiro Yogo.
Contributors: Borja, Larrain.; Motohiro, Yogo.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 12847; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12847.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The appropriate measure of cash flow for valuing corporate assets is net payout, which is the sum of dividends, interest, and net repurchases of equity and debt.  Variation in net payout yield, the ratio of net payout to asset value, is mostly driven by movements in expected cash flow growth, rather than by movements in discount rates.  Net payout yield is less persistent than dividend yield and implies much smaller variation in long-horizon discount rates.  Therefore, movements in the value of corporate assets can be justified by changes in expected future cash flow"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 3/23/2007.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.