Guttman, Ilan; Kadan, Ohad; Kandel, Eugene - In: Review of Financial Studies 23 (2010) 12, pp. 4455-4495
We argue that dividend stickiness, the tendency of managers to keep dividends unchanged, implies that managers use a partially pooling dividend policy. We offer a model that demonstrates how such a policy can evolve endogenously in equilibrium. An informed manager who cares about the firm's...