Dividend Changes as a Sign of Firm Maturity Gustavo Grullon * Rice University Roni Michaely Cornell University and Tel Aviv University Bhaskaran Swaminathan Cornell University First Draft: October 1998 This Draft: January 1999 * Please address correspondences to either of the last two authors at: Johnson Graduate School of Management, Sage Hall, Cornell University, Ithaca, NY 14853. Email addresses for Michaely and Swaminathan are rm34@cornell.edu and bs30@cornell.edu, respectively. We thank Eli Berkovitch, Harold Bierman, Kobi Boudoukh, David Hirshleifer, Soeren Hvidkjaer, Avner Kalay, Charles Lee, Gidion Saar, Oded Sarig, Jaime Zender and seminar participants at Cornell University, University of Michigan, Rice University and Tel-Aviv University for their helpful comments and suggestions.