Porta, Rafael La; Lopez-de-Silanes, Florencio; … - In: Journal of Finance 55 (2000) 1, pp. 1-33
This paper outlines and tests two agency models of dividends. According to the "outcome model," dividends are paid because minority shareholders pressure corporate insiders to disgorge cash. According to the "substitute model," insiders interested in issuing equity in the future pay dividends to...