Dividend payments attenuate agency issues, but they can also be used by managers for management entrenchment. Using open-ended mutual funds, we find that dividend yield (DY) is positively (negatively) related to a fund's post-dividend net cash flow (performance). In addition, we find that...

Using a unique sample of open-ended mutual funds, which are flexible in dividend policy and not required to “pass through” dividend to investors, we test whether funds pay dividend to cater to investor's demand for cash or they exploit investor's imperfect rationality to serve fund managers'...

Using a unique sample of open-ended mutual funds, which are not subject to “pass through” requirements, we test whether paying dividend creates a potential agency issue. We find that dividend yield (DY) is positively (negatively) related to a fund's post-dividend net cash flow (performance)....