Managers have more information about the company than shareholder. (Asymmetric Information) This means they may need to
Posted: Mon May 02, 2022 9:41 am
Managers have more information about the company than shareholder. (Asymmetric Information) This means they may need to signal to investors through their payout policy. What information is signaled when a company: • Increases their dividend payments • Decreases their dividend payments • Announces a share repurchase