Recent economics literature shows renewed interest in models of Bertrand competition with cost uncertainty. We continue this reexamination and introduce cost correlation as a way to mitigate the asymmetry of information between firms facing Bertrand competition. We also allow firms to make an...

In contrast to the disappearing dividends view, we predict that variability in dividend payments increases investor demand for dividend information and analysts respond to this demand by producing informative dividend forecasts. We examine dividend payers from 16 countries spanning 2000–2013...