Historical evidence shows that over the last few decades a larger proportion of firms have used ________ for payouts.

Question

Quizplus · Accepted Answer

According to historical evidence, over the last few decades, a larger proportion of firms have used share repurchases over dividends as a means of payouts. Share repurchases involve the company buying back its own shares from shareholders, reducing the number of outstanding shares and increasing the value of the remaining shares. This corporate action has become increasingly popular due to its flexibility, tax advantages, and ability to signal confidence in the company's future prospects.

Historical Evidence Shows That Over the Last Few Decades a Larger