One of the simplest stock valuation models is the dividend growth model, often attributed to Gordon (1962). For instance, suppose that a firm pays dividends once a year and that after one year, when that dividend is paid, the stockholder plans to sell the investment. The value of the stock, P0, at the beginning of […]
Ethics in finance is concerned with the issue of how criteria reflecting the general good and in excess of formal legal or contractual obligations are incorporated into corporate financial decisions. Key areas of application are in remuneration and conduct of agents, informational asymmetry and disclosure and the degree to which ethical considerations are priced in […]