Fividend policy

This study examines the relationship between firm location and dividend. According to agency theory, remotely located firms may use higher dividends to reduce shareholder-manager agency conflicts because of obstacles in observing the managers’ actions. Besides, according to signaling theory, due to information asymmetry, remotely located firms may remain their higher dividend to signal their investors about their prospects.

9p wangxinling 23-07-2021 12 0   Download