Concept
Dividend policy
Related publications (6)
Capital supply uncertainty, cash holdings, and investment
Semyon Malamud, Erwan Morellec, Julien Hugonnier
We develop a dynamic model of investment, financing, and cash management decisions in which investment is lumpy and firms face capital supply uncertainty. We characterize optimal policies explicitly, demonstrate that smooth-pasting conditions may not guara ...
2015Endogenous Dividend Dynamics and the Term Structure of Dividend Strips
Many leading asset pricing models predict that the term structure of expected returns and volatilities on dividend strips are upward sloping. Yet the empirical evidence suggests otherwise. This discrepancy can be reconciled if EBIT dynamics are combined wi ...
2012Corporate investment and financing under asymmetric information
Erwan Morellec, Norman Schuerhoff
We develop a dynamic model of corporate investment and financing decisions in which corporate insiders have superior information about the firm's growth prospects. We show that firms with positive private information can credibly signal their type to outsi ...
2011