Research has shown all of the following to be true of the way corporations determine dividends except:
A) Firms have short-run target payout ratios.
B) Firms have long-run target payout ratios.
C) The focus is more on dividend changes rather than absolute dividends.
D) Managers try to avoid dividend changes that may need to be reversed.

Question

Quizplus · Accepted Answer

Firms typically have long-run target payout ratios rather than short-run ones, focusing on sustainable dividend policies over time.

Research Has Shown All of the Following to Be True