We model dividend and consumption growth rates as containing a small long-run predictable component and economic … rate, and the ex-post volatilities of the market return, real risk free rate, and the price-dividend ratio. As in the data …, the model also implies that dividend yields predict returns and that market return volatility is stochastic. The main …

), announcements of new investments, share repurchases, and dividend announcements. We find that 4% of public firms in our sample …

This paper tests whether firms altered their dividend and share repurchase policies in response to the 2003 reductions … in shareholder tax rates. We predict that firms substituted dividends for repurchases, because the reduction in dividend … (particularly officers and managers) when setting dividend and share repurchase policies …

factors that drive dividend and share repurchase policies. We find that managers are very reluctant to cut dividends, that … dividends are smoothed through time, and that dividend increases are tied to long-run sustainable earnings but much less so than … investment. Managers like to repurchase shares when they feel their stock is undervalued and in an effort to affect EPS. Dividend …