Borokhovich, Kenneth A.; Brunarski, Kelly R.; Harman, Yvette - In: The Financial Review 40 (2005) 1, pp. 37-65
We report new evidence on the hypothesis that dividends reduce agency costs. Consistent with dividends as a mechanism to reduce agency costs, we find that, on average, firms with a majority of strict outside directors on their boards experience significantly lower mean abnormal returns around...