Michaely, Roni; Rossi, Stefano; Weber, Michael - 2017 - This version: October 2017
model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes and larger changes … in volatility come with larger announcement returns. We find similar results for share repurchases. Crucially, the data … that payout policy conveys information about future cash flow volatility. Our methodology can be applied more generally to …