In this paper we try to better understand the adverse consequences of mandatory dividend rules. We identify two main … reasons why firms may pay only the mandatory minimum dividend: financial constraints and private benefits. We also argue that … dividend. Using a sample of publicly traded Brazilian companies and multivariate regressions, we found evidences that firms …

In this paper we try to understand the adverse consequences of mandatory dividend rules. We identify two main reasons … why firms pay only the mandatory dividend: financial constraints and private benefits. Using a sample of Brazilian … companies, we found evidences that firms that pay only the minimum dividend are motivated by financial constraints and private …