-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 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 …

dividend and earning. It means that dividend has information content about return and earning and so, signaling theory was …, signaling theory was not approved. In addition to, there was a significantly positive relationship between dividend and size. It … indicates that larger firms pay more dividends. -- dividend policy ; signaling theory ; corporate operating characteristics …

good news at low levels of leverage, dividends become a bad signal when leverage is high. Quantitatively, a dividend …

-prepared dividend cutters and test the implications of two alternative theories: the “signaling through market preparation” theory and …-prepared dividend cutters. Overall, our empirical results are consistent with the signaling theory … information (“prepare the market”) in advance of a possible dividend cut, and the consequences of such market preparation. We use …

cross-section, we show that both dividend levels and changes contain more earnings information among firms with weaker … information through their dividend changes. We show that for firms with strong investment opportunities, because funding … dividend payout …

-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 …