Gürtler, Marc; Hartmann, Nora - Department Wirtschaftswissenschaften, Technische … - 2003
In this paper we develop an optimal dividend policy in the presence of limited rational inves-tors. Concretely … investors' modified utility results in the optimality of dividend payments as well as dividend smoothing, which both have long … been puz-zles to financial theorists. Moreover, a model specification leads to a gradual dividend adjustment to changes in …