Grullon, Gustavo; Michaely, Roni; Benartzi, Shlomo; … - In: The Journal of Business 78 (2005) 5, pp. 1659-1682
One of the most important predictions of the dividend-signaling hypothesis is that dividend changes are positively correlated with future changes in profitability and earnings. Contrary to this prediction, we show that, after controlling for the well-known nonlinear patterns in the behavior of...