Kuo, Nan-Ting - In: Review of Quantitative Finance and Accounting 40 (2013) 3, pp. 539-570
The purpose of our study is to explore what types of information content are conveyed by dividends on future earnings … future earnings (i.e. the future earnings response coefficient, FERC). Based on exploring the Taiwan market, our results … problems, and this suggests that higher cash payouts mitigate manager over-investment so future earnings are more highly valued …