9. Agency Costs and the Free Cash Flow Hypothesis

  1. H. Kent Baker
  1. Tarun Mukherjee

Published Online: 29 NOV 2011

DOI: 10.1002/9781118258408.ch9

Dividends and Dividend Policy

Dividends and Dividend Policy

How to Cite

Baker, H. K. (2009) Agency Costs and the Free Cash Flow Hypothesis, in Dividends and Dividend Policy, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118258408.ch9

Author Information

  1. Professor of Finance and Moffett Chair in Financial Economics, University of New Orleans

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 20 APR 2009

ISBN Information

Print ISBN: 9780470455807

Online ISBN: 9781118258408



  • dividend signaling model;
  • cash flow model;
  • net present value;
  • incremental cash disbursement;
  • signaling model


This chapter contains sections titled:

  • Introduction

  • Free Cash Flow Theory

  • Empirical Tests of Free Cash Flow Hypotheses

  • Conclusions

  • About the Author