The Information Effect of Dividends Suggests That Dividends Are an Important

question 21

True/False

The information effect of dividends suggests that dividends are an important communication tool since management might have no other credible way to inform investors about future earnings.

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Definitions:

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, focusing on achieving one's full potential and self-fulfillment.

Affiliation Needs

The human desire to build and maintain social relationships, connections, and a sense of belonging with others.

Physiological Needs

Basic human requirements for survival and physical well-being, such as food, water, shelter, and sleep, as identified in Maslow's hierarchy of needs.

Security Needs

Fundamental requirements concerning an individual's or entity's need for safety and protection from harm.