the increased cash on hand. General dividend-smoothing theory predicts that temporary increases in cash due to natural …. We specify a new channel of precautionary cash holdings as related to dividend-smoothing, which predicts that increased … dividends should cause firms to keep more cash on hand. In the reverse direction, theory's predictions depend on the source of …

exposed to misinformation regarding dividend payouts in a previous game, with the correct dividend matrix also provided. The … (heterogeneously). RESULTS: Homogenous misinformation stating that the last game’s dividend payouts were high, led to larger … treatments. It was also discovered that agents receiving the ‘high dividend’ misinformation had lower returns than non …