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 the consequences of these rules for firms should...

On their profits, companies must decide whether to distribute to its shareholders or invest in profitable projects that enhance future results. Many researches tried to discover the factors that influenced companies to distribute part of their profits based on theirs total dividend payout....

We exploit a feature in Brazilian regulation that requires firms to pay a minimal dividend (depending on the firm's bylaws and yearly income) to study the factors influencing firms to pay above minimum rates. Due to this fact we consider their desire to pay occurs only when they pay an amount...

We develop a simple model of investment in business groups subject to moral hazard. Our model suggests that productivity and pledgeable income are the drivers of resources in the internal capital markets of these groups. This prediction can be use to explain on the grounds of efficiency some...

We test whether a country's level of financial development or institutional quality (or both) have a first order effect on corporate debt maturity decisions on a sample of 359 non-financial firms from five South American countries over a 12 year period. We find that there is a substantial...