Even though a substantial percentage of the companies that are listed on both the New York Stock Exchange (NYSE) and the NASDAQ do not pay dividends, many academics conclude that a major driver of share value is the dividend and its perceived growth. Despite this many investors are willing to purchase non-dividend paying shares and, in fact, many of these companies have very favorable market valuations.

Why do you think this condition exists? Explain your answer but keep your answer brief. And please name one company that is publicly traded but has no dividend and in fact no earnings and negative cash flow but yet a substantial market valuation.