Dividends May Fulfil a Corporate Governance Role

Dividends may fulfil a corporate governance role.

A) Forcing managers to pay out high dividends reduces the free-cash-flow problem.
B) Forcing managers to pay out high dividends is one way of addressing the principal-agent problem.
C) Dividends have been shown to be less flexible in the UK and the USA compared to Germany.
D) All of the above are correct.