Chen, Long; Da, Zhi; Priestley, Richard - In: Management Science 58 (2012) 10, pp. 1834-1853
asset price variation. A little studied question is how dividend smoothing, as a choice of corporate policy, affects … predictability. We show that even if dividends are supposed to be predictable without smoothing, dividend smoothing can bury this … subject to dividend smoothing--net payout and earnings--we reach the consistent conclusion that cash flow news plays a more …