Dispersed ownership structures and large amounts


Why do firms with more-diverse shareholder bases typically pay higher dividends than private firms or public firms with more concentrated ownership structures? How are fixed dividends used as a bonding (commitment) mechanism by managers of firms with dispersed ownership structures and large amounts of free cash flow?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Dispersed ownership structures and large amounts
Reference No:- TGS050225

Expected delivery within 24 Hours