-term institutional investors have a higher propensity to buybacks shares instead of using dividends. Firm managers seem to respond to the …-term oriented shareholders, while firms pay dividends if their stock is mostly held by long-term investors who have less need to … liquidate their investment and may have a better tax treatment with dividends. We document two effects of investor pressure: for …

theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

equity. The firm is liquidated when it runs out of cash. Dividends are paid only when accumulated earnings reach a certain …

was exacerbated by large scale payments of dividends, in spite of widely anticipated credit losses. Dividend payments …

In spite of mounting losses banks continued to pay dividends during the crisis. We present a model that addresses this … behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks … externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to …

across banks. In particular, by paying out dividends, a bank transfers value to its shareholders away from its creditors, who … feature excess dividends relative to a coordinated policy that maximizes the combined equity value of banks. …