Combined, these results suggest that the agency cost (over investment) hypothesis provides a plausible explanation for the initiation announcement return patterns that I observe. Paying cash out by initiating dividend payments reduces the probabilitythat the managers of a firm with poor investment opportunities (low Q) and ample resources (high cash flow) are likely to overinvest or waste their stockholders' cash, and this reduction in the agency costs of over investment appears to be priced viahigher dividend initiation announcement returns.
đang được dịch, vui lòng đợi..
