This paper examines empirically whether the dividend initiation decisions of a sample of newly-public firms are best explained by the predictions of the Miller and Rock (1985) cash flow signalling model, or by the competing agency cost models presented by Easterbrook (1984), Jensen (1986), and...

This paper examines the performance of newly public firms and compares those firms that initiated dividends with those that did not. Earnings increases following the dividend initiation and earnings surprises for initiating firms are more favorable than those for noninitiating firms....

Rajan and Zingales (1995) find that tangibility, growth opportunity, size and performance are the four common determinants to explain capital structure across G-7 countries. In this study, we consider a sample of 590 firms from Argentina, Chile, Mexico, Peru and United States of America, to...