The observation that cash-rich firms often make questionable acquisitions in diverse industries, rather than increase dividends, indicates that:

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Cash-rich firms making questionable acquisitions instead of increasing dividends suggests that there is a focus on growth for the sake of growth rather than prioritizing shareholder returns. This indicates that growth is often valued for its own sake, regardless of whether it creates value for shareholders.

The Observation That Cash-Rich Firms Often Make Questionable Acquisitions in Diverse