Firms that have poor profitability are more likely to be non-dividend paying. Selecting only dividend paying stocks can serve as a check on poor profitability. Using positive ROE to control for poor performance can result in bogus results without additional filters. For example, if both the numerator (net income) and the denominator (average equity) are negative, ROE will be positive.作者: ishfaque 时间: 2011-7-13 15:26
Also, Firms that pay less dividends reinvest the profit and give the returns to the investors in terms of capital appreciation ...( share price increase)作者: trogulj 时间: 2011-7-13 15:26
The above is from Schweser. I was trying to understand it. Sorry for the confusion.作者: Kiakaha 时间: 2011-7-13 15:26
