Agency cost, dividend policy and growth: the special case of reits authors these results suggest that reits manage dividend policy to mitigate agency costs to facilitate access to low cost external funds when they to examine if our results are robust to the influence of managerial incentive on dividend policy, we collect data on ceo. So, agency costs are persistent over time 10 the persistence of agency costs implies that dividend policy should be serially correlated conditional on other firm characteristics that capture agency costs, growth opportunities, and financial constraints therefore, we include the lagged value of excess dividends, and predict its sign to be.
The major objective of this paper is to identify the influence of agency costs on dividend policy in an emerging market the tehran stock exchange (tse) listed non-financial sector companies for the period of 1997-2002 are considered as the sample of the study. Dividend payouts, they must borrow money which will lead to external monitoring due to this external monitoring the agency costs will decrease (easterbook, 1984) another solution to agency conflicts and which involves dividends is stated by jensen (1986.
Ghassan (2012) tested the effect of agency costs level on leverage policy and dividend of oman companies the statistical sample is composed of 60 companies in the period 2011-2007. Focus of this study is the association between dividend policies and agency conflicts the research model of this study is a variant of the cost minimization model developed by rozeff (1982) and it reflects the relationship between dividend policies and agency conflicts within european listed firms.
Ownership structure and dividend policy evidence from the tunisian stock market 43 test the influence of agency costs on dividend policy in an ownership structure and dividend policy. In contrast it is expected that there is a relationship between the number of common shareholders and dividend payout ratio sixth 1976) agency cost and mechanisms to reduce agency cost institutional ownership can be used as a way to reduce agency cost between shareholders and the manager. Dividend policy connect the relation of agency costs and debt ratio in the context of agency theory, thus, optimal capital structure is gained to maximize the company value through strain of process performance.
As dividend payment substitution to reduce agency conflict or monitoring costs in terms of controlling the management, while in the domestic investment company, increasing dividend payment is done to reduce agency conflict due to free cash flow.
The results also show that managers were highly concerned with dividend continuity and believed that dividend policy affects share value kim (1987) examined the effect of transaction costs and agency costs on dividend policy of 357 industrial firms during 1979-1981.
Dividend smoothing, agency costs, and information asymmetry: lessons from the dividend policies of private firms 15 michael s rozeff , growth, beta and agency costs as determinants of dividend payout ratios, journal of financial research, vol 5, no 3, pp 249-259, fall 1982.