Publication Date

2009

Abstract

This paper attempts to add to existing research on corporate payout by focusing on the role that the principal-agent problem plays on dividend policies of public and private banks. The results indicate that private banks are better able to monitor mangers use of excessive free cash flow and retaining earnings and will be more willing to let retained earnings build up without returning them to owners in the form of dividends or stock repurchases.

Disciplines

Business

Included in

Business Commons

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