Institutional ownership and dividend policy: A framework based on tax clientele, information signaling and agency costs.
Description:
This study is an empirical examination of a new theory that links dividends to institutional ownership in a framework of both information signaling and agency costs. Under this theory put forth by Allen, Bernardo and Welch in 2000, dividends are paid out to attract tax-favored institutional investors, thereby signaling good firm quality and/or more efficient monitoring. This is based on the premise that institutions are considered sophisticated investors with superior ability and stronger incen…
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Date:
August 2008
Creator:
Zaghloul Bichara, Lina
Partner:
UNT Libraries