Pages • 3
Dividend Policy, Agency Costs , and Earned EquityDividend Policy, Agency Costs , and Earned EquityHarry DeAngelo* Linda DeAngelo* René M. Stulz**June 2004AbstractWhy do firms pay dividends? If they didnt their asset and capital structures would eventually become untenable as the earnings of successful firms outstrip their investment opportunities. Had they not paid dividends, the 25.