We develop a theory in which the decision to pay dividends is driven by investor demand. Managers cater to investors by … this prediction, we construct four time series measures of the investor demand for dividend payers. By each measure … analysis confirms that the results are better explained by the catering theory than other theories of dividends …

infer beliefs from prices. The model fits well the moments of the market return, risk free rate, and price-dividend ratio …. Consistent with the data, it implies higher mean and lower volatility of consumption and dividend growth rates, lower mean and … volatility of the market return and equity premium, and higher mean of the price-dividend ratio in the first regime compared with …

the sum of the dividend yield on stocks plus some weighted average of expected future growth rates in dividends. We …

unconditional cross-sectional moments of household consumption growth and the moments of the risk-free rate, equity premium, price-dividend … ratio, and aggregate dividend and consumption growth. The model-implied risk-free rate and price-dividend ratio are …

. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …

Many leading asset pricing models predict that the term structures of expected returns and volatilities on dividend … these models replace their exogenously specified dividend dynamics with processes that are derived endogenously from capital …) when leverage is low (high), which shifts risk from long-horizon to short-horizon dividend strips. This framework also …

We outline a dividend signaling approach in which rational managers signal firm strength to investors who are loss … of the same level next period. The model is consistent with several features of the data, including equilibrium dividend … policies similar to a Lintner partial-adjustment model; modal dividend changes of zero; stronger market reactions to dividend …