One Potential Rationale for Paying Dividends Is That the Payment

question 90

True/False

One potential rationale for paying dividends is that the payment of dividends indirectly results in a closer monitoring of management's investment activities,hence lowering agency costs.

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Definitions:

Katz

Likely refers to Daniel Katz, an American psychologist known for his contributions to social psychology and the study of attitudes.

Ego-Defensive Function

A psychological mechanism in which individuals adopt attitudes or behaviors to protect their self-esteem or justify actions that might be unacceptable or threatening to their ego.

Attitude Functions

The roles that attitudes play in the cognitive and social processes of an individual, such as expressing values or guiding actions.

Value-Expressive Function

A psychological function wherein attitudes and preferences express the individual's central values and self-concept.