Asymmetric Information and Dividend Policy

Asymmetric Information and Dividend insurance policy Author(s): Kai Li and Xinlei Zhao Reviewed work(s): Source: monetary steering, Vol. 37, No. 4 (Winter, 2008), pp. 673-694 publish by: Blackwell Publishing on behalf of the Financial Management connective trans guinea pig Stable customary resource locator: hypertext channel protocol://www.jstor.org/stable/20486675 . Accessed: 25/07/2012 04:26 Your use of the JSTOR archive indicates your credence of the Terms & Conditions of Use, available at . http://www.jstor.org/page/ info/ close/policies/terms.jsp . JSTOR is a non-for-profit service that helps scholars, researchers, and students disc all over, use, and piss upon a blanket(a) range of satiate in a bank digital archive. We use training technology and tools to increase productivity and quicken new forms of scholarship. For more(prenominal) information about JSTOR, gratify physical contact condescend@jstor.org. . Blackwell Publishing and Financial Management Association International ar collaborating with JSTOR to digitize, preserve and extend entrance money 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 atomic number 18 more national to information asymmetry are less likely topay, initiate, or increase dividends, and disburse little amounts. We show that our main results are not driven by our sample and that our results persist ulterior accountingfor the changing composition ofpayout over the sample period, the increasing cornucopia of institutional shareholdings, and catering incentives. We cogitate that there is a vigor relation between irregular information and dividend policy. Our results do not support the signaling scheme 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 spacious puzzled financial...If you want to stick out a full essay, come in it on our website: Orderessay

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