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Diffuse radiation is caused by:
Residual Dividend Theory
The idea that corporations pay dividends with whatever money is left over out of earnings after all projects with a positive NPV are undertaken.
Signaling Effect
The idea that actions taken by a company can provide information to the market or signal the company’s future prospects, potentially affecting its stock price.
Retention for Investment
The practice of holding back a portion of earnings or profits for reinvestment in the business, rather than distributing them as dividends.
Disposition of Earnings
Decisions made by a company regarding the allocation of its net income, including dividends distribution and retained earnings.
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