DeAngelo, Harry; DeAngelo, Linda; Skinner, Douglas J - In: Journal of Finance 47 (1992) 5, pp. 1837-63
An annual loss is essentially a necessary condition for dividend reductions in firms with established earnings and dividend records: 50.9 percent of 167 NYSE firms with losses during 1980-85 reduced dividends, versus 1.0 percent of 440 firms without losses. As hypothesized by Merton H. Miller...