What Is Equity Theory? What Is the Difference Between Felt

question 14

Essay

What is equity theory? What is the difference between felt negative inequity and felt positive inequity? What are some of the actions that employees can take to restore equity?

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Definitions:

Expected ROE

The projected Return on Equity, estimating the amount of net income returned as a percentage of shareholders' equity.

Required Rate Of Return

The lowest yearly return rate on an investment that motivates individuals or corporations to invest in a specific security or project.

Dividends Per Share

The amount of dividends that a company pays out to its shareholders for each share held, typically expressed on an annual basis.

Growth In Dividends

An increase in the amount of dividends paid out to shareholders over time, indicating a company's growing profitability and stability.