We analyze cross-sectional and time-series patterns in the relationship between firms that are frequent issuers of new securities and their underwriters over the 1970-1996 period. In particular, we focus on the relation between fees charged for underwriting services and the closeness of the...

It is well established that firms smooth out changes in their dividends relative to changes in their earnings. We do not, however, have a widely accepted theoreticalexplanation of this behavior. This paper rationalizes dividend smoothing by deriving the Lintner model as equilibrium behavior in...