Asymmetric Information and Dividend Policy

Asymmetric Information and Dividend Policy Author(s): Kai Li and Xinlei Zhao Reviewed work(s): Source: monetary Management, Vol. 37, No. 4 (Winter, 2008), pp. 673-694 Published by: Blackwell Publishing on behalf of the pecuniary Management Association transnational Stable cosmopolitan resource locator: hypertext transfer protocol://www.jstor.org/stable/20486675 . Accessed: 25/07/2012 04:26 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, addressable at . http://www.jstor.org/page/ info/ somewhat/policies/terms.jsp . JSTOR is a non-for-profit go that helps scholars, researchers, and students discoer, use, and build upon a blanket(a) range of content in a trusted digital archive. We use information technology and tools to gain productivity and quicken new forms of scholarship. For more information about JSTOR, please physical contact support@jstor.org. . Blackwell Publishing and Financial Management Association Internation al be collaborating with JSTOR to digitize, preserve and play access to Financial Management. http://www.jstor.org Asymmetric Information Policy and Dividend Kai Li and XinIei Zhao* We tryoutine how informational asymmetries affectfirms dividendpolicies.

Wefind thatfirms that are more national to information asymmetry are less likely topay, initiate, or increase dividends, and disburse littler amounts. We show that our main results are not driven by our sample and that our results persist later accountingfor the changing composition ofpayout over the sample period, the increasing impressiveness of institutional shareholdings, and catering incentives. We quit that the re is a nix relation between irregular inf! ormation and dividend policy. Our results do not support the signaling surmisal of dividends. In thispaper, studyhow informational we asymmetriesaffect firms dividendpolicies by exam ining the relation between a firmsdividendpolicy and thequalityof its information environment. Dividends have capacious puzzled financial...If you want to start up a full essay, station it on our website: OrderEssay.net

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