A group of investors with heterogeneous risk preferences maximize their joint, weighted life-time utility from payouts. Group members' utility weights are endogenously deter- mined at startup. Each member receives a non-tradeable claim that is optimally tailored to her risk preferences. Claims...

"We develop a model where dividend payout, investment and financing decisions are made by managers who attempt to maximize the rents they take from the firm. But the threat of intervention by outside shareholders constrains rents and forces rents and dividends to move in lockstep. Managers are...