Abstract Taking Chinese listed companies from 2006 to 2015 as samples and using stochastic frontier model (SFA) to compute the total agency cost of firms and dividend stability, this paper examines the non-linear relationship between cash dividend and agency cost, and that between cash dividend and capital structure. The test result shows that cash dividend has an inverted U shaped relationship with the agency cost, in that cash dividend below target dividend can aggravate agency conflicts, while cash dividend above target dividend restrains agency cost. There is also an inverted U shaped relationship between cash dividend and capital structure. Additionally, the non-state ownership magnifies the inhibiting effect of cash dividend on capital structure.
HAN Yun. Dividend Stability, Agency Cost and Capital Structure——An Empirical Study Based on Stochastic Frontier Model. Economic Survey, 2017, 34(6): 0152.
2017, Vol. 34 
