In the first article, I examine managers' decision to pay dividends with a dynamic cash model. The model departs from the Modigliani and Miller world according to two dimensions: Agency costs and financing frictions. In this paper, I show that managers with more valuable outside options pay more...

In the third article, I examine the effects of credit rationing on corporate cash holdings by modeling the precautionary demand for cash. In the model firms can pledge part of the future cash-flows to creditors when current cashflows are insufficient to finance investment. The discrete time...