We study the dynamic general equilibrium of an economy where risk averse shareholders delegate the management of the firm to risk averse managers. The optimal contract has two main components: an incentive component corresponding to a non-tradable equity position and a variable “salary” component indexed to the aggregate wage bill and to aggregate dividends. Tying a manager’s compensation to th...

We study the dynamic general equilibrium of an economy where risk averse shareholders delegate the management of the firm to risk averse managers. The optimal contract has two main components: an incentive component corresponding to a non-tradable equity position and a variable ’salary’ component indexed to the aggregate wage bill and to aggregate dividends. Tying a manager’s compensation to th...

This paper divulges the long term relationship among earning, investment and dividends from 2000 to 2011. Empirical evidence was collected to explore the Modigliani and miller theory of dividend irrelevance. Data was collected from all the sectors but it was ensured that firms did not have negative data of earnings as it is earnings which are either transformed into investment or dividends. Mul...

this paper divulges the long term relationship among earning, investment and dividends from 2000 to 2011. empirical evidence was collected to explore the modigliani and miller theory of dividend irrelevance. data was collected from all the sectors but it was ensured that firms did not have negative data of earnings as it is earnings which are either transformed into investment or dividends. mul...

The present study analyzes dividends paid in unlisted family and non-family businesses, exploring factors that lead to higher or lower dividend payments. Data from 612 Spanish companies during 12 consecutive years was analyzed. This indicates as a result of the greater proximity business, pay dividends. However, we found evidence pyramid structures, susceptible agency costs, both businesses. In...

this paper compares the value relevance of book value and dividends versus book value and reported earnings. the main purpose of this study explains which of dividends, book value and earnings are more value relevance. thus, we have examined 98 firms of tehran stock exchange over a period 1377-1382. our methodology of examining the information content of various income statement and balance she...