Shapiro, Dmitry; Zhuang, Anan - In: Journal of Economics and Business 79 (2015) C, pp. 62-81
In this paper we develop a generalization of the Baker and Wurgler (2012) signaling model where investors are loss-averse to dividend cuts. We apply our framework to study how a firm's characteristics and manager's incentives affect payout policy properties. In equilibrium firms with riskier...