The first essay studies the impact of labor mobility risk on corporate dividend policy. I argue that a stringent labor mobility regime reduces the risk of losing human capital and trade secrets to rivals, thus reducing uncertainty, and making dividends payment more feasible. Consistently, I find that stronger enforceability of Non-compete Agreements leads to a higher propensity to pay dividends and dividend amounts. Additional analyses indicate that the increase in dividend is concentrated in firms that are more concerned with human capital and trade secrets protection. In a channel analysis, I document that stronger NCA enforceability reduces firms’ earnings uncertainty, which in turn leads to the increase in dividends. In the second essay...