Agency cost, market risk, investment opportunities and dividend policy – an international perspective
Abstract
Reviews previous research on dividend policy, most of which is US‐based, and presents a worldwide study of the relationship between dividend payout, agency costs, market risk and investment opportunities. Finds that the dividend payout ratio is significantly negatively related to institutional ownership of a firm’s shares (i.e. agency costs) and its beta value (i.e. market risk) but independent of investment decisions. Discusses consistency with other research, recognizes that other factors are also likely to influence dividend policy and calls for further research.
Keywords
Citation
D’Souza, J. and Saxena, A.K. (1999), "Agency cost, market risk, investment opportunities and dividend policy – an international perspective", Managerial Finance, Vol. 25 No. 6, pp. 35-43. https://doi.org/10.1108/03074359910765993
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited