Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089679 | Journal of Banking & Finance | 2013 | 18 Pages |
Abstract
⺠We derive a dynamic model jointly optimizing growth rate and payout ratio. ⺠The optimal growth rate follows a mean-reverting process. ⺠The expected payout is subject to error when stochastic growth is introduced. ⺠Empirical results support implications of the theoretical model. ⺠We provide an alternative explanation on disappearing cash dividends.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hong-Yi Chen, Manak C. Gupta, Alice C. Lee, Cheng-Few Lee,