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Private information in stock prices is an important determinant of dividend policy and this has important impacts on financial markets (quoted from Casari and Meier,

Private information in stock prices is an important determinant of dividend policy and this has important impacts on financial markets” (quoted from Casari and Meier, 2015). Analyse the statement above and the factors which could possibly affect the firm’s payout policy. Relevant examples or illustrations should be given.

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Managers listen to the market since changes in corporate policies are sensitive to market reactions quote Dividends can be costly to managers because they reduce their freedom to pursue expansion stra... blur-text-image

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