Are predictions supported by empirical research findings

Reference no: EM131317460

1. What is the average stock market reaction to: (a) a dividend initiation; (b) a dividend increase; (c) a dividend termination; and (d) a dividend decrease (cut)? Are these reactions logically consistent?

2. What are the key assumptions and predictions of the agency cost/contracting model of dividend payments? Are these predictions supported by empirical research findings?

Reference no: EM131317460

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