We study an optimal dividend problem under a bankruptcy constraint. Firms face a trade-off between potential bankruptcy …

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 …

The present study primarily examines the impact of financial distress (FD) on the dividend policy of 33 banks working … dividend policy under the influence of shareholder activism (SHA). Using the static panel data regression technique, it is … revealed that financial distress is non-linearly associated with the dividend policy of banks in an inverted U-shape. In the …