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Managers have more information about the company than shareholder. (Asymmetric information) This means they may need to signal to investors through their payout policy. What

Managers have more information about the company than shareholder. (Asymmetric information) This means they may need to signal to investors through their payout policy. What information is signaled when a company:

  • Increases their dividend payments
  • Decreases their dividend payments
  • Announces a share repurchase

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