This paper investigates the effect of corporate risk management on dividend policy. We extend the signaling framework … level, the lower the incremental dividend. This result is in line with the purported positive relation between information … asymmetry and dividend policy (e.g., Miller and Rock, 1985) and the assertion that risk management alleviates the information …

-Miller irrelevance theorem. This paper combines dividend signalling theories and the Diamond-Dybvig bank run model. An opaque bank must … signal its solvency by paying high and stable dividends in order to keep depositors tranquil. This signalling may require … costly liquidations if the return on assets has been poor, but not paying the dividend might cause panic and trigger a run on …

This paper finds that dividend signaling hypothesis is able to explain the phenomenon of assets concentration in short … and medium investments in Islamic Interest-Free banking (IIFBs). In this paper a dividend signaling model framework has … been introduced, where in the process of maintaining a stable dividend, mangers of Islamic Interest-Free banking (IIFBs …

Dividend reductions have long been considered a "last resort" action for firm managers. Managerial reluctance to reduce … dividends emanates from the view that dividend drops signal managerial pessimism regarding future earnings. Contrary to … expectations, studies show that earnings rebound significantly following a dividend reduction; yet investors react negatively to …

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 …

driven by dividend smoothing. Thus, the empirical tests of dividend signaling theory might be misspecified …This paper uses a dynamic partial equilibrium model to explain a puzzle of dividend smoothing. In contrast to the … Modigliani-Miller theory, I show that firm value depends on payout policy. The analysis implies that firms with more stable …

-averse to dividend cuts. We apply our framework to study how firm's characteristics and manager's incentives affect payout … less likely to pay dividends. Third, there is a clientele effect that is investors' preferences impact the dividend policy …. We show that if firm's investors are less sensitive to dividend cuts then the firm is less likely to pay dividends …

This paper helps to explain the dividend patterns of large corporations by presenting a dynamic model where payout …, reduce cash flows (precisely what dividends signal), leading to dividend payments that are smoothed relative to current …