The authors propose a rational signaling model to investgate the information content of dividends. The model provides a direct test of the relation between unexpected dividend and earnings changes. In identifying the component of unexpected dividend changes, the authors suggest an expectations...

It is often documented, based on autocorrelation, variance ratio, and power spectrum, that exchange rates approximately follow a martingale process. Because these data check serial uncorrelatedness rather than martingale difference, they may deliver misleading conclusions in favor of the...