What are the key assumptions and predictions of the agency cost/contracting model of dividend payments? Are these

Question:

What are the key assumptions and predictions of the agency cost/contracting model of payments? Are these predictions supported by research findings?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...