Long, Michael S.; Malitz, Ileen B.; Sefcik, Stephan E. - In: Journal of Financial and Quantitative Analysis 29 (1994) 01, pp. 131-144
This paper empirically examines the underinvestment problem and the use of dividends to expropriate lenders' wealth. Rather than analyzing the market's reaction to potential wealthexpropriating events, a different aspect of potential conflicts of interest is addressed: do managers who control...