Financial Review
Опубликовано на портале: 16-06-2006
Kenneth A. Borokhovich, Kelly R. Brunarski, Yvette Harman, James B. Kehr
Financial Review.
2005.
Vol. 40.
No. 1.
We report new evidence on the hypothesis that dividends reduce agency costs. Consistent
with dividends as a mechanism to reduce agency costs, we find that, on average, firms
with a majority of strict outside directors on their boards experience significantly
lower mean abnormal returns around the announcements of sizeable dividend increases.
Our results are robust to multivariate controls for firm size, leverage, ownership,
growth options, and change in dividend yield. However, we find no evidence that dividend
increases reduce agency costs as measured by poison pills or outside blockholdings
