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How are agency costs related to dividend policy?

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Finance

Howare agency costs related to dividend policy?

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Agency theory of dividends claims that the payment of dividends is one of the measures available to managers for controlling agency behaviour Specifically it is proposed that by inducing external monitoring dividends reduce agency costs although at the same time increasing the transaction costs associated with raising external funds The agency theory of dividend in general and the    See Answer
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Howare agency costs related to dividend policy?

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