Stock Valuation, Dividends and Learning Through Age: how learning about a firm and its dividend policy affects its valuation
This paper looks into how learning about firms and their dividend policy affects their valuation, while comparing the results between North American and German firms. Learning is observed through the age of a firm,where the market-to-book ratio (M/B) is predicted to decline over a firm’s lifespan. M/B is expected to be affected positively by the uncertainty of growth, and this effect is associated mor