Dr. Richard Robinson of the Department of Business Administration is the co-author of the article, “Capital Change and Stability when Dividends Convey Signals,” published in The Quarterly Review of Economics and Finance.
The article investigates financial market reactions to dividend changes when they are combined with corporate capital investment changes. It explains recent mixed evidence concerning the phenomenon known as “dividend signaling,” described as a way to conceptualize a link between a company’s dividend changes and the financial market’s expectation of future profitability. The research uses continuous-time optimal-control mathematics as a new method of modeling the phenomenon.
Dr. Robinson co-wrote the article with Dr. Sourav Batabyal of Loyola University, who is a former visiting faculty member of Fredonia’s Department of Economics.
The article is currently accessible online, and will soon be available in print.
