theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

We consider a setting in which insiders have information about income that outside shareholders do not, but property … rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent …

-term oriented shareholders, while firms pay dividends if their stock is mostly held by long-term investors who have less need to …

was exacerbated by large scale payments of dividends, in spite of widely anticipated credit losses. Dividend payments …

behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …

We consider a model in which banks face two moral hazard problems: 1) asset substitution by shareholders, which can … to creditors upon failure so as to retain market discipline and be made available to shareholders only contingent on good …

smooth dividend policy. We present a model that explains this behavior in a setting where there are financial externalities … across banks. In particular, by paying out dividends, a bank transfers value to its shareholders away from its creditors, who … in turn are other banks. This way, one bank's dividend payout policy aects the equity value and risk of default of otther …