This paper examines how loan covenant violations impact firm dividend policy. Using contract-level loan data for … likelihood of a dividend reduction in the subsequent quarter. Moreover, we show that the degree of creditor–shareholder conflict … and firm financial constraints are important determinants of dividend cuts upon technical default. Additionally, this …

shareholder’s income (dividend payment versus capital gains), b) number of periods, c) fixed versus proportional return on capital …, and d) tax aspects. On base of Masulis and Trueman paper (1988) optimal dividend payout ratio was also proposed. …

The paper studies features of the formation of the dividend policy and the factors that determine the example of joint … development of effective dividend policy are tools that would allow property owners to maximize revenues. …