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The Idea That Dividend Changes Reflect Managers' Views About a Firm's

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The idea that dividend changes reflect managers' views about a firm's future earnings prospects is called the ________ hypothesis.


Definitions:

Expectancy-value Models

These models explain how the expectations of success and the value of goals affect motivation and decision-making.

Incentive

A motivation or reward that encourages a person or group to act in a certain way.

Person's Perception

The subjective process through which individuals interpret sensory stimuli to form their own understanding of the world.

Drive Theory

A psychological theory suggesting that motivation is a result of biological drives that require satisfaction.

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