Which of the following is the most important factor motivating dividend policy for most large corporations?

Question

Quizplus · Accepted Answer

Most large corporations prioritize avoiding reducing dividends per share as the most important factor motivating dividend policy. This is because cutting dividends can signal to investors that the company may be in financial trouble or unable to sustain previous levels of profitability. As a result, companies often strive to maintain or increase dividend payments, even if it means sacrificing other factors such as changes in EPS or avoiding flotation costs.

Which of the Following Is the Most Important Factor Motivating