The article discusses how companies use cash dividends to lower agency costs between owners and managers. It's based on a theory that explains how shareholders tackle the problem of managers acting in their own interest instead of the company's. The theory was first laid out in the 1970s by American scholars Jensen and Meckling. They showed how agency costs affect businesses and how dividend policy can help reduce these costs for listed companies. The study looks at how giving dividends to shareholders can help align the interests of owners and managers, which can lead to better decision-making within the company.