Empirical evidence about the behaviour of financial managers suggests that firms ________ repurchase activity and also ________ dividend payments.

Question

Quizplus · Accepted Answer

Empirical evidence suggests that financial managers do not smooth repurchase activity, meaning they do not attempt to maintain a steady level of repurchase activity over time. However, they do tend to smooth dividend payments, adjusting dividend payments gradually and avoiding large changes in dividend payouts.

Empirical Evidence About the Behaviour of Financial Managers Suggests That