Dionne, Georges; Ouederni, Karima - In: Finance Research Letters 8 (2011) 4, pp. 188-195
This article investigates the effect of corporate risk management on dividend policy. We extend the signaling framework of Bhattacharya [1979. Bell Journal of Economics 10, 259–270] by including the possibility of hedging the future cash flow. We find that the higher the hedging level, the...