A model that states that there are two parameters to a company's dividend policy. These parameters are the target payout ratio and the speed where current dividends adjust to that target. The theory was adopted based on observations that many companies will set their long-run target dividends-to-earnings ratios based upon the amount of positive net-present-value projects that they have available.
Related information about Lintner's Model:
- Lintner's Model Definition | Investopedia
A model stating that dividend policy has two parameters: (1) the target payout ratio and (2) the speed at which current dividends adjust to the target.
- What is Lintner's Model? definition and meaning
Definition of Lintner's Model: A model that states that there are two parameters to a company's dividend policy. These parameters are the target payout ratio and ...
- Lintner's Model - Financial Dictionary - The Free Dictionary
A model theorizing how a publicly-traded company sets its dividend policy. The model states that dividends are paid according to two factors. The first is the net ...
- Lintner's Model: Definition from Answers.com
Lintner's Model A model stating that dividend policy has two parameters: (1) the target payout ratio and (2) the speed at which current.
- Lintner's Model
Lintner's model, sometimes referred to as the partial-adjustment model, ... In Lintner's model, a firm is assumed to have a desired level of dividends that is based ...
- a lintner model of dividends and managerial rents - MIT Sloan
Oct 18, 2010 ... Fama and Babiak (1968) tested Lintner's model for individual firms over a 20- year period and reported a mean P AC of 0.32 and a mean target ...
- CHAPTER 5 DATA ANALYSIS OF LINTNER MODEL
Nevertheless, Lintner's model failed to explain why companies pay dividends. Professor Lintner's main finding is that low values of 'r' can be attributed to smaller ...
- Does Lintner's dividend model explain South African dividend ...
This study investigates whether Lintner's model can be used to explain South ... Lintner's model does not have a very good fit, probably as a result of the small ...