In Order to Reduce Agency Costs,managers May Decrease Dividends,thus Shifting

question 142

True/False

In order to reduce agency costs,managers may decrease dividends,thus shifting the focus of investors to future capital gains than can only be attained by a well-run corporation.

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Definitions:

Scientific Theories

Well-substantiated explanations of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.

Scientific Process

A methodical approach used in scientific inquiry to explore observations, formulating and testing hypotheses, thereby expanding knowledge.

Standardized Procedures

Established methods followed consistently to ensure uniformity and accuracy in tasks.

Measurement

The process of obtaining a quantitative value or size of an object or phenomenon, typically using instruments or standardized units.