Dividend smoothing remains a puzzle

Dividend smoothing remains a puzzle for Önancial economists. We present a model in
which smoothing of dividends arises as an equilibrium outcome. A manager who cares
about the intrinsic value of the Örm as well as its current stock price has to decide
how to allocate earnings between investments and dividends. Since the stock price is
determined by uninformed investors, the manager has an incentive to ináate dividends
and lower investment relative to the Örst best. We show that there is a continuum of
equilibria in which the dividend is constant for a range of realized earnings. Compared
to the standard separating equilibrium, this partial pooling induces higher Örm value,
lower average dividends, and lower deviation from the Örst-best investment. We argue
that the previous yearís dividend can serve as a ìfocal point,îallowing managers and
investors to coordinate on just one in a continuum of equilibria. We conclude that
dividend smoothing provides a partial remedy to underinvestment resulting from
information asymmetries. We also o§er several new testable predictions relating
dividend smoothing to investorsímix, managerial incentives, and investment.

Kết quả (Chichewa) 1:

Lopeza kuwongola akhala chithunzi cha Önancial chuma. Ife kupereka chitsanzo pa
zimene kusalaza wa benefiti n'lakuti ngati mgwirizano zotsatira. Bwana A amene amasamala
za kufunika zofunika za Örm kwambiri ngati panopa mtengo katundu ali ndi ufulu wosankha
mmene kuonetsetsa zasungidwa pakati pa ndalama ndi benefiti. Popeza mtengo akhalire
mtima ndi ndalama osadziwa, bwana ali zokoma kwa ináate benefiti
pansi ndalama wachibale kwa Örst bwino. Timasonyeza kuti pali popitilira wa
equilibria imene lopeza ndi zonse chifukwa osiyanasiyana zasungidwa anazindikira. Poyerekeza
ndi muyezo kulekanitsa mgwirizano, kuchotsa izi tsankho induces mtengo wapamwamba Örm,
m'munsi mapindu ambiri, ndi kupatuka m'munsi kwa ndalama Örst-bwino. Tikuti tiyenera
kuti yapita yearís lopeza atha kutumikira ngati mfundo ìfocal, îallowing Mabwana ndi
ndalama agwirire limodzi lokha mu popitilira wa equilibria. Tinganene kuti
lopeza kuwongola amapereka mankhwala tsankho kwa underinvestment chifukwa
asymmetries zambiri. Ifenso o§er angapo maulosi latsopano testable zokhudza
lopeza kuwongola kuti investorsímix, zolimbikitsa oyang'anira ndi ndalama.