Campbell (1991) decomposition, we are able to estimate expected cash flows from data on stock returns. Consistent with our … dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the … model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes and larger changes …

dividends and foreign ownership deter earnings management. The author shows that dividend increases and foreign ownership … influence of dividends in increasing earnings quality decreases. Improving transparency through dividend increases and …