Teng, Min; Hachiya, Toyohiko - In: Review of Pacific Basin Financial Markets and Policies … 16 (2013) 03, pp. 1350016-1
This paper examines stock repurchases from an agency perspective by identifying agency costs across three dimensions … through stock repurchases. Particularly, monitored firms with higher levels of cash balance prefer cash dividends to stock … mitigate agency costs. However, when firms have a very high level of dividends, they substitute stock repurchases for dividends …