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Author

Benjamin Golez

Other affiliations: Mendoza College of Business
Bio: Benjamin Golez is an academic researcher from University of Notre Dame. The author has contributed to research in topics: Dividend & Stock (geology). The author has an hindex of 9, co-authored 24 publications receiving 331 citations. Previous affiliations of Benjamin Golez include Mendoza College of Business.

Papers
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Journal ArticleDOI
TL;DR: In this paper, the authors used a new and forward-looking measure of dividend growth extracted from S&P 500 futures and options to correct the dividend-price ratio for changes in expected dividend growth.
Abstract: The dividend-price ratio is a noisy proxy for expected returns when expected dividend growth is time-varying. This paper uses a new and forward-looking measure of dividend growth extracted from S&P 500 futures and options to correct the dividend-price ratio for changes in expected dividend growth. Over January 1994 through June 2011, dividend growth implied by derivative markets reliably forecast future dividend growth, and the corrected dividend-price ratio predicts S&P 500 returns substantially better than the standard dividend-price ratio, in-sample and out-of-sample. Time-varying expected dividend growth is important to explain price movements, especially because it is highly correlated with expected returns.

66 citations

Journal ArticleDOI
TL;DR: In this paper, the authors combine annual stock market data for the most important equity markets of the last four centuries: the Netherlands and UK (1629-1812), UK (1813-1870), and US (1871-2015).

65 citations

Journal ArticleDOI
TL;DR: In this article, the authors used a new and forward-looking measure of dividend growth extracted from S&P 500 futures and options to correct the dividend-price ratio for changes in expected dividend growth.
Abstract: The dividend-price ratio is a noisy proxy for expected returns when expected dividend growth is time-varying. This paper uses a new and forward-looking measure of dividend growth extracted from S&P 500 futures and options to correct the dividend-price ratio for changes in expected dividend growth. Over January 1994 through June 2011, dividend growth implied by derivative markets reliably forecasts future dividend growth, and the corrected dividend-price ratio predicts S&P 500 returns substantially better than the standard dividend-price ratio, in-sample and out-of-sample. Time-varying expected dividend growth is important to explain price movements, especially because it is highly correlated with expected returns.

56 citations

Journal ArticleDOI
TL;DR: In this article, bank-associated mutual funds systematically increase their holdings in the controlling bank stock around seasoned equity issues, at the time of bad news about the controlling banks, before anticipated price drops, and after non-anticipated price drops.

38 citations

Journal ArticleDOI
TL;DR: In this article, bank-affiliated mutual funds systematically increase their holdings in the controlling bank stock around seasoned equity issues, at the time of bad news about the controlling banks, before anticipated price drops, and after non-anticipated price drops.
Abstract: Fund managers are double agents; they serve both fund investors and owners of management firms. This conflict of interest may result in trading to support securities prices. Tests of this hypothesis in the Spanish mutual fund industry indicate that bank-affiliated mutual funds systematically increase their holdings in the controlling bank stock around seasoned equity issues, at the time of bad news about the controlling bank, before anticipated price drops, and after non-anticipated price drops. The results seem mainly driven by bank managers’ incentives. Ownership of asset management companies thus matters and can distort capital allocation and asset prices.

32 citations


Cited by
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01 Feb 1951
TL;DR: The Board of Governors' Semiannual Agenda of Regulations for the period August 1, 1980 through February 1, 1981 as discussed by the authors provides information on those regulatory matters that the Board now has under consideration or anticipates considering over the next six months.
Abstract: Enclosed is a copy of the Board of Governors’ Semiannual Agenda of Regulations for the period August 1, 1980 through February 1, 1981. The Semiannual Agenda provides you with information on those regulatory matters that the Board now has under consideration or anticipates considering over the next six months, and is divided into three parts: (1) regulatory matters that the Board had considered during the previous six months on which final action has been taken; (2) regulatory matters that have been proposed for public comment and that require further Board consideration; and (3) regulatory matters that the Board may consider over the next six months.

1,236 citations

Book ChapterDOI
01 Jan 2012
TL;DR: In this paper, a simple equilibrium model with liquidity risk is proposed, where a security's required return depends on its expected liquidity as well as on the covariances of its own return and liquidity with the market return.
Abstract: This paper solves explicitly a simple equilibrium model with liquidity risk. In our liquidityadjusted capital asset pricing model, a security s required return depends on its expected liquidity as well as on the covariances of its own return and liquidity with the market return and liquidity. In addition, a persistent negative shock to a security s liquidity results in low contemporaneous returns and high predicted future returns. The model provides a unified framework for understanding the various channels through which liquidity risk may affect asset prices. Our empirical results shed light on the total and relative economic significance of these channels and provide evidence of flight to liquidity. r 2005 Elsevier B.V. All rights reserved.

1,156 citations

01 Jan 1892
TL;DR: In this paper, the authors explore a hypothesis, based on acIcumulating evidence, regarding the character of inventions likely to issue from the research laboratories of the large industrial corporations.
Abstract: r 9HE purpose of this paper is to explore a hypothesis, based on acIcumulating evidence, regarding the character of inventions likely to issue from the research laboratories of the large industrial corporations. Simply put, this hypothesis may be stated as follows: with few exceptions, the large industrial laboratories are likely to be minor sources of major (radically new and commercially or militarily important) inventions; rather they are likely to be major sources of essentially "improvement" inventions. Put more precisely, the hypothesis states that the proportion of all minor inventions originating in the large industrial laboratories is likely to exceed the proportion of all major inventions originating in these laboratories. Note that the stress on the relative importance of these laboratories as sources of improvement inventions is not necessarily a denigration of the economic importance of this contribution. The cumulative effect of these improvement inventions may be, and often has been, of substantial importance over long periods of time for advancing technology, investment opportunities, and economic growth. The stress on improvement inventions as the principal product of the research laboratories of the large industrial corporations is meant simply to emphasize that, whatever the importance of their contributions, most of the latter is not likely to involve radically new inventive activity. I cannot claim originality for this hypothesis. After it suggested itself in the course of my investigations, I discovered that others, some of them in the most unlikely positions,2 had earlier said much the same thing. But, apart from occasional remarks, I can find no discussions attempting to explain or justify it. And because, if reasonably accurate, it has numerous ramifications, I have felt the need to set down an extended analysis of 1 I wish to thank members of the Seminar on Law and Technology, sponsored by the University of Wisconsin Law School under the auspices of the Ford Foundation, for their many helpful comments on this paper. Especially do I wish to thank Professors Jacob Schmookler, Robert Merrill, John Stedman, Harrison White, and John Heath. 2 See particularly the statement quoted below (p. 114) of D)r. Frank Jewett, former president of Bell Laboratories.

689 citations